MeiraGTx Enters Financing Agreement for Up to $100 Million Secured by Manufacturing Facilities
August 4, 2022
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,” said Alexandria Forbes, president and CEO of MeiraGTx. “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, MeiraGTx 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 4 years, with a maturity date of August 2, 2026, when the principal will be due. The interest rate is 10 percent plus the greater of 1 percent 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 percent 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 percent 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 six programs in clinical development and a broad pipeline of preclinical and research programs. MeiraGTx has core capabilities in viral vector design and optimization and gene therapy manufacturing, and a gene regulation platform technology which allows precise, dose responsive control of gene expression by oral small molecules with dynamic range that can exceed 5000-fold. MeiraGTx’s initial focus is on three distinct areas of unmet medical need: ocular diseases, including both inherited retinal diseases as well as large degenerative ocular diseases, neurodegenerative diseases, and severe forms of xerostomia.
Author: Rare Daily Staff
Sign up for updates straight to your inbox.