Apnimed, a pharmaceutical company developing novel oral therapies for obstructive sleep apnea (OSA), entered into a senior secured credit facility for up to $150 million with funds managed by HealthCare Royalty Partners (HCRx). The capital is expected to support commercial readiness activities and the planned U.S. launch of Apnimed’s lead product candidate, AD109, if approved by the U.S. Food and Drug Administration (FDA).
Under the terms of the agreement, Apnimed will receive $50 million at closing. An additional $50 million tranche will become available upon FDA approval of AD109, and the company may access a third $50 million tranche upon achievement of a pre-specified sales milestone, subject to customary closing conditions.
The financing includes an interest-only period of four years, which is extended to five years, if Apnimed achieves a specified net sales milestone. Apnimed also agreed to pay a synthetic royalty equal to a low single-digit percentage of net sales of AD109 and certain other specified revenues, subject to customary terms and conditions.
“HCR is a highly respected healthcare investor with deep experience in credit financing, and their investment represents an important validation of our investigational product, AD109 and its commercial potential,” Larry Miller, CEO of Apnimed, said. “This strategic financing provides significant financial flexibility and supports our continued progress toward the potential U.S. commercialization of AD109, if approved.”
Clarke Futch, chairman and CEO of HCRx, said, “With its focused regulatory and commercial strategy for AD109, a novel oral therapy designed to address the root causes of OSA, we believe Apnimed is uniquely positioned to meaningfully impact the treatment landscape for patients living with this serious disease. We look forward to supporting Apnimed’s continued growth and mission to bring this innovative treatment option to patients as expeditiously as possible.”
