Replimune Group, a clinical stage biotechnology company pioneering the development of a novel class of tumor-directed oncolytic immunotherapies, obtained a $200 million non-dilutive term loan facility from Hercules Capital, a provider of customized debt financing for companies in the life sciences and technology-related markets. This non-dilutive capital extends cash runway into 2025 ahead of key catalysts from the company’s registration-directed CERPASS and IGNYTE trials in cutaneous squamous cell carcinoma (CSCC) and anti-PD1 failed melanoma inclusive of the costs of funding commercial infrastructure and the running of a confirmatory study to support a potential BLA filing in anti-PD1 failed melanoma.
“This non-dilutive financing option provides Replimune with significant flexibility as we prepare for key RP1 skin franchise data catalysts and related commercial preparations of our novel tumor-directed oncolytic immunotherapies as well as the advancement of RP2/3 into Phase 2 studies,” Jean Franchi, CFO of Replimune, said. “Not only does this non-dilutive financing strengthen what we believe to be an already strong financial position, it creates optionality in future capital formation and enables us to choose when, and to what extent, we access available funding in order to help manage future cost of capital and dilution.”
“Hercules strives to align with some of the best and brightest companies in the life sciences industry to provide them with long-term capital commitments to help them achieve their ambitious goals. We are excited to collaborate with Replimune and their team ahead of numerous data, regulatory and commercial milestones,” Bryan Jadot, senior managing director and group head at Hercules Capital, said.
The loan facility consists of up to six tranches, five of which can be drawn at Replimune’s option and each maturing in October 2027. The loan facility provides for at least 48-months of interest-only at close, which interest-only period can be extended up to 60 months upon satisfaction of certain milestones. An initial $30 million tranche was funded at closing with an additional $30 million available to be drawn at Replimune’s option prior to Sept. 30, 2023. An additional $115 million is available subject to the company’s achievement of specified performance milestones relating to clinical, regulatory and commercial events. The final $25 million tranche is available for draw, at Replimune’s option and subject to Hercules consent during the interest-only period.
Armentum Partners acted as the company’s exclusive financial advisor on this transaction.