Corium, a commercial-stage biopharmaceutical company involved in the development and commercialization of novel central nervous system therapies, closed on a $235 million term loan agreement with Hercules Capital, a provider of specialty financing for life science and technology companies. Corium will receive an initial tranche of $100 million, and the remaining funds will be available in three additional tranches upon the achievement of certain pre-defined milestones.
“This financing will provide funds to support continued U.S. commercialization of AZSTARYS, which is now available for the treatment of ADHD for patients six years of age and over, that was approved by the FDA in March of this year and the advancement of our pipeline, including our investigational treatment for Alzheimer’s,” Perry J. Sternberg, president and CEO of Corium, said. “I am extremely proud of Hercules’ confidence in Corium and its belief in our growth potential.”
“Hercules is pleased to enter into a strategic relationship with Corium at this pivotal time in its evolution” Michael Dutra, managing director at Hercules Capital, said. “With an approved product now available that can help address unmet medical needs, other potentially promising drugs in development and a successful contract development and manufacturing operation business, Corium is executing on its mission to provide clinicians with important new treatment options. This substantial capital commitment from Hercules aims to help Corium turn innovative technology into important commercial products and reflects our dedication to provide customized financing solutions to growth-stage life science companies.”
J. Wood Capital Advisors was the exclusive advisor to Corium in the financing transaction.
Hercules Capital also reported it, together with external funds managed by its adviser subsidiary, has originated more than $1.5 billion year to date in annual total gross debt and equity commitments in 2021, breaking its previous one-year record of $1.47 billion.
“This record-breaking achievement is a testament to the quality of our team and the market-leading position the Hercules platform has established over its 17-year history,” Scott Bluestein, CEO and chief investment officer of Hercules Capital, said. “More importantly, this performance, in just the first nine months of the year, is complemented by our best internal portfolio credit rating through Q2 2021, which is reflective of our consistent and disciplined underwriting approach. The venture capital and private equity markets have fostered unprecedented levels of liquidity, which have presented our deal teams with a strong pipeline of high-quality opportunities across the life sciences and technology sectors.
“Having recently closed our investment grade public offering of $325 million 2.625% notes, we will finish the year with strong liquidity while successfully lowering our overall cost of debt. This puts us in an excellent financial position to continue to pursue the right investment opportunities which enable us to grow and deliver strong shareholder returns.”
