SetPoint Medical, a clinical-stage healthcare company dedicated to patients with chronic autoimmune diseases, entered into a senior secured term loan facility of up to $65 million from Runway Growth Capital, a provider of growth loans to both venture and non-venture backed companies. The loan is an expansion of an existing credit facility with Runway.
The funds will be used to complete the ongoing RESET-RA study and subsequent U.S. Food and Drug Administration (FDA) regulatory submissions and early commercialization for the company’s rheumatoid arthritis (RA) indication. The SetPoint system is designed for patients with RA who have incomplete response to or are intolerant to biologic drugs. The system consists of a miniaturized stimulation device placed on the vagus nerve through a small incision on the left side of the neck in an outpatient procedure. The vagus nerve stimulation activates innate anti-inflammatory pathways on a preset schedule.
“We are pleased to continue our relationship with Runway,” Murthy V. Simhambhatla, Ph.D., president and CEO of SetPoint Medical, said. “This non-dilutive debt financing provides additional support and flexibility as we advance our mission and progress toward completing the RESET-RA study. We are confident that we have the right lender and partner to advance the development and early commercialization of our novel therapeutic platform for patients with chronic autoimmune conditions.”
“We are excited to support SetPoint Medical and partner with such a forward-thinking company in the chronic autoimmune disease space,” Igor DaCruz, managing director of life sciences at Runway Growth Capital, said. “Runway believes the SetPoint Medical team is well positioned to improve the lives of patients and their families, who in many cases may have exhausted their biologic options for relief.”
