MeiraGTx Holdings, a vertically integrated, clinical-stage gene therapy company, entered into a term loan agreement with affiliates of Perceptive Advisors for up to $100 million, including $75 million upon closing.
“Access to this minimally dilutive capital secured by our manufacturing facilities extends our cash runway to the fourth quarter of 2024 and highlights the value of the infrastructure we have built,” Alexandria Forbes, Ph.D., president and CEO of MeiraGTx, said. “In this market environment where the cost of equity capital remains high, our wholly-owned manufacturing facilities enable us to finance the company through the achievement of significant milestones such as advancing our Phase 3 Lumeos clinical trial of botaretigene sparoparvovec (AAV-RPGR) for the treatment of X-linked retinitis pigmentosa to BLA filing, which is fully funded by our partner Janssen. Importantly, the agreement also enables us to fully retain the significant value we are creating through our pipeline programs and all of our genetic medicine technology platforms.”
Under the term loan agreement, the company received $75 million upon closing and may request an additional $25 million during the first two years of the term under the same terms and collateral, subject to the lender’s approval. The credit facility is interest-only for four years, with a maturity date of Aug. 2, 2026, when the principal will be due. The interest rate is 10% plus the greater of 1% or one-month CME Term SOFR. In connection with the closing, the company issued Perceptive warrants exercisable into 400,000 ordinary shares of the company with a per share exercise price of $15.00 (a 92% premium to closing share price on the date of the transaction) and additional warrants exercisable into 300,000 ordinary shares of the company with a per share exercise price of $20.00 (a 156% premium to closing share price on the date of the transaction).
MeiraGTx intends to use the proceeds for the continued development of its clinical-stage product candidates, preclinical programs and technology platforms and for other general corporate purposes.
“MeiraGTx has incredible depth of assets, including what we view as industry-leading manufacturing and process development capabilities and infrastructure,” Sam Chawla, portfolio manager at Perceptive, said. “We are pleased to further our partnership with MeiraGTx as they advance their late-stage clinical programs and gene regulation technologies.”
