Hercules Capital closed a term loan of up to $75 million for Nabriva Therapeutics, a clinical stage biopharmaceutical company engaged in the research and development of novel anti-infective agents to treat serious infections. $25 million in financing was funded on the day of closing.

“This financing provides Nabriva Therapeutics with growth capital needed to support our potential launches of both lefamulin and CONTEPO in the second half of 2019,” said Ted Schroeder, CEO of Nabriva Therapeutics. “The additional capital received today allows us to extend our cash runway into the second quarter of 2020. Subject to the achievement of regulatory and commercial milestones, additional tranches under the term loan will continue to fund our efforts to launch two potential first-in-class antibiotics in the United States and further extend our cash runway.”

Under the terms of the loan, in addition to the $25 million already received at closing, Nabriva Therapeutics is eligible to receive up to an aggregate of $15 million in two tranches upon the approval by the U.S. Food and Drug Administration of new drug applications for antibiotics lefamulin and CONTEPO. The company will also be eligible, at its discretion, to receive an additional $30 million of aggregate term loan advances in three separate tranches upon the achievement of specified product revenue milestones. The final $5 million tranche is available through December 31, 2021, subject to Hercules’ sole discretion.

Nabriva is entitled to make interest-only payments for 18 months from the loan closing, with extensions up to 36 months upon the achievement of specified performance milestones. It will be required to repay the term loan after the interest-only period based on a monthly amortization schedule, with a final maturity date occurring on June 20, 2023.

“Hercules is pleased to enter into this financing partnership with Nabriva at this important stage to allow it to continue to advance and expand its pipeline and achieve its growth objectives,” said Scott Bluestein, Hercules chief investment officer. “This investment in Nabriva provides another example of our unique and differentiated ability to creatively finance life sciences companies through multiple stages of development and through various value inflection points.”

Armentum Partners acted as financial advisor to Nabriva Therapeutics for the debt financing.