Viridian Therapeutics, a biotechnology company advancing new treatments for patients suffering from serious diseases underserved by current therapies, entered into a debt financing agreement with Hercules Capital for up to $75 million.
“Viridian started 2022 with a strong cash position of more than $195 million in cash and investments. This credit facility further increases our financial strength, providing the Company with strategic and operational flexibility,” Kristian Humer, chief financial and business officer at Viridian Therapeutics, said. “We anticipate transformational data from both VRDN-001 and VRDN-002 clinical programs in the next several quarters. We seek to progress both programs into registrational trials as fast as possible. This credit facility reduces our dependence on capital markets allowing us to focus on executing a rapid and efficient registrational program and our plans to deliver new options to patients suffering with thyroid eye disease across broader settings of care than currently approved therapies.”
Under the terms of the agreement, Viridian drew an initial $5 million at closing. An additional $20 million is available at the company’s request through June 15, 2023, with an additional $25 million available upon the company’s achievement of certain milestones, and the remaining $25 million available subject to final lender approval. The company is under no obligation to draw funds in the future. The facility carries a single-digit cost of capital.
“Hercules is pleased to enter into a strategic relationship with Viridian as it advances its clinical stage programs,” Cristy Barnes, managing director at Hercules Capital, said. “This capital commitment from Hercules aims to help Viridian deliver new options to patients suffering from thyroid eye disease and reflects our dedication to provide customized financing solutions to growth-stage life science companies.”
Viridian’s cash, cash equivalents and short-term investments were $197 million as of Dec. 31, 2021. Excluding this $75 million credit facility, the company believes that its current cash, cash equivalents and short-term investments will be sufficient to fund its operations into 2024.