FibroGen entered into a non-dilutive term loan facility with investment funds managed by Morgan Stanley Tactical Value (MSTV) that will result in proceeds to FibroGen of up to $150 million, providing non-dilutive capital to support growth and innovation and to advance FibroGen’s pamrevlumab toward commercialization and to continue the development of the company’s pre-clinical pipeline.
“With the current momentum across our development programs, this financing strengthens our balance sheet,” Enrique Conterno, CEO of FibroGen, said. “Part of the proceeds will be used to fund our wholly-owned pamrevlumab program as we anticipate five phase three readouts to occur before mid-2024. In addition, this funding allows for the continued development of our early-stage pipeline.”
The $150 million term loan facility will be available to the company in three tranches:
- The initial tranche of $75 million will be funded by May 8
- The second tranche of $37.5 million will be funded in Q3/23 upon achievement of certain clinical development milestones
- MSTV has the option to fund a third tranche of up to $37.5 million in Q3/23
Borrowings under this three-year term loan facility will accrue interest at 14%. The outstanding principal amount of the term loan facility will be payable at maturity.
“We are pleased to extend this term loan facility to FibroGen in support of their continued growth,” Tom Cahill, co-head of MSTV, said. “Roxadustat is a first-in-class chronic kidney disease anemia drug in approved markets and we are excited by the continued prospects in additional markets, the pamrevlumab program and the pipeline of other promising opportunities.”
Morgan Stanley acted as sole structuring agent to FibroGen on this transaction and Goodwin Procter acted as counsel to FibroGen. Gibson, Dunn & Crutcher acted as counsel to the investor.