Inozyme Pharma, a clinical-stage rare disease biopharmaceutical company developing novel therapeutics for the treatment of abnormal mineralization, entered into a debt financing facility for up to $70 million with K2 HealthVentures (K2HV), a healthcare-focused specialty finance company.
“In 2022, Inozyme has delivered the first clinical validation of INZ-701 in ENPP1 deficiency and ABCC6 deficiency through our previously-announced positive preliminary data, and successfully raised capital through an underwritten offering supported by blue-chip healthcare investors. Together with our financing, this debt facility further strengthens our balance sheet and provides strategic and operational flexibility,” Sanjay Subramanian, M.S., MBA,CFO of Inozyme, said. “We look forward to the milestone-rich quarters ahead, when we expect to announce topline data from our ongoing phase 1/2 clinical trials in both indications. We also seek to advance to registrational trials as soon as possible. Our partnership with K2HV reduces our dependence on capital markets allowing us to focus on our mission of helping patients suffering from diseases of abnormal mineralization.”
Under the terms of the agreement, Inozyme drew $5 million from K2HV upon execution of the loan agreement, and has an option to draw down an additional $20 million from the first tranche through March 31, 2023. Subsequently, an additional $20 million will be available in two tranches upon the achievement of certain milestones during specified availability periods, and the final $25 million is subject to lender approval. The company is under no obligation to draw funds in the future.
Inozyme expects that its cash, cash equivalents and short-term investments as of March 31, 2022, together with net proceeds of $68.3 million from its April 2022 offering and the $25 million available under the first tranche of the loan agreement, will enable the company to fund its operations into the second quarter of 2024.
“We are pleased to partner with Inozyme on this financing, which will support the company as it advances its lead asset through multiple indications and studies,” Nimesh Shah, managing director at K2HV, said. “Inozyme’s deep understanding of the biology underpinning mineralization and its development of novel therapeutics to address underlying causes of diseases of abnormal mineralization, position them to transform the lives of people suffering from these rare conditions.”
