Ardelyx, a biopharmaceutical company founded with a mission to discover, develop and commercialize innovative first-in-class medicines that meet significant unmet medical needs, entered into a debt financing agreement with investment affiliates managed by SLR Capital Partners.
“We are pleased to enter into this agreement with SLR for non-dilutive capital ahead of an important catalyst for the company this year, namely the launch and commercialization of IBSRELA for the treatment of irritable bowel syndrome with constipation in adults,” Justin Renz, CFO of Ardelyx, said. “This financing further strengthens our balance sheet and extends our cash runway offering operational flexibility to further support the launch of IBSRELA.”
“SLR is excited to be a long-term partner with Ardelyx as they launch and commercialize IBSRELA,” Anthony Storino, head of life science finance at SLR, said. “We are delighted to partner with Ardelyx during this important time of transition to a commercial company, and this significant commitment of capital represents that belief and our commitment to financing life sciences companies across all stages of development.”
The loan agreement provides for a senior secured term loan facility with a maturity date of March 1, 2027 and an interest only period through March 2024. Under the terms of the loan agreement, $27.5 million was drawn at closing, and will be used by the company to repay in full the 2018 term loan agreement with Solar Capital and Western Alliance, under which the interest only period had expired. Ardelyx may also borrow an additional $22.5 million upon under the new facility with SLR on or prior to July 25, 2023; provided that the company has received approval by the U.S Food and Drug Administration for its New Drug Application for tenapanor for the control of serum phosphorus in adult patients with chronic kidney disease on dialysis on or before Dec. 31, and that the company has achieved certain product revenue milestones targets. The term loan has an interest rate of 7.95% plus the 30-day LIBOR.