Dyne Therapeutics, a clinical-stage company focused on delivering functional improvement for people living with genetically driven neuromuscular diseases, entered into an amendment to its non-dilutive senior secured term loan facility with Hercules Capital, a company in customized debt financing for companies in the life sciences and technology-related markets.
The transaction further strengthens the company’s balance sheet as it advances zeleciment rostudirsen (z-rostudirsen, also known as DYNE-251) for exon 51 Duchenne muscular dystrophy (DMD) and zeleciment basivarsen (z-basivarsen, also known as DYNE-101) for myotonic dystrophy type 1 (DM1) through critical clinical and regulatory milestones.
“As we continue to focus on diligent execution against our clinical and regulatory objectives, we are pleased to deepen our partnership with Hercules,” Erick Lucera, chief financial officer of Dyne, said. “This additional access to capital enhances our financial flexibility as we prepare for two potential U.S. launches in the next two years and continue on our mission to deliver functional improvement for individuals living with rare neuromuscular diseases.”
- Bryan Jadot, senior managing director and group head of Hercules Capital, added, “Hercules is proud to be expanding our support of Dyne as they prepare for the potential approval and commercial launches of z-rostudirsen and z-basivarsen. Our increased commitment reflects our strong conviction in Dyne’s programs and our unique ability to support innovative life sciences companies at transformative stages of development.”
Under the terms of the amendment, $50 million was funded upon execution of the amendment, and an additional term loan tranche for $50 million that can be drawn at Dyne’s option subject to the achievement of certain milestones was added to the term loan facility. The final term loan tranche was also increased by $25 million to provide up to an additional $75 million, which may be funded upon request of Dyne and at the discretion of Hercules Capital. Including the $50 million funded upon execution of the amendment, Dyne has borrowed an aggregate of $200 million in loan proceeds in three tranches under the term loan facility and maintains access to up to $200 million in potential future funding under the facility.
