Mighty Therapeutics, a commercial-stage biotechnology company pioneering a new class of medicines that directly target mitochondrial dysfunction in rare and age-related diseases, closed transactions securing up to $150 million in non-dilutive growth and equity capital. The company has entered into an agreement with K2 HealthVentures (K2HV), an alternative investment firm that provides flexible, long-term financing solutions in life sciences and healthcare, to provide a credit facility of up to $125 million, including an initial $30 million tranche. The company has also held an initial closing of its Series B financing, in which founding investor Morningside has invested $25 million.
“We are deeply gratified by Morningside’s ongoing support, and very excited to partner with K2 HealthVentures to accelerate and broaden our efforts to address the unmet medical needs of the many individuals living with diseases of mitochondrial dysfunction,” Reenie McCarthy, CEO of Mighty Therapeutics, said. “These financings secure our access to the additional capital necessary to reach cash flow positivity, supporting our continued leadership of the burgeoning field of mitochondrial medicine across a broad range of therapeutic areas. With our strong commercial momentum and promising pipeline, we are poised for long-term growth and continued patient impact.”
Under the K2HV credit facility, the first $30 million term loan was funded upon signing of the agreement. The second $25 million term loan is expected to be available for drawdown through early 2028, subject to the company’s achievement of specified commercial, clinical and regulatory milestones. The third $20 million term loan is expected to be available for drawdown through early 2029, subject to the company’s achievement of specified commercial, clinical, regulatory and financing milestones. An additional $50 million tranche is available for draw at Mighty’s option, subject to K2HV’s discretion.
