Travere Raises $275 Million in Upsized Convertible Senior Notes Offering
March 9, 2022
Rare disease drug developer Travere Therapeutics said priced an upsized underwritten offering of $275 million aggregate principal amount of 2.25 percent convertible senior notes due 2029.
The sale of the Notes is expected to close on March 11, 2022, subject to customary closing conditions. The aggregate principal amount of the offering was increased from the previously announced offering size of $250 million. Travere also granted the underwriters of the Notes an option to purchase, for settlement on or before March 31, 2022, up to an additional $41.25 million aggregate principal amount of Notes, solely to cover over-allotments.
Travere intends to use a portion of the net proceeds from the offering to repurchase approximately $207.1 million aggregate principal amount of its outstanding 2.50 percent senior convertible notes due 2025 (the “2025 Notes”) for cash, including accrued and unpaid interest, of approximately $213.8 million. Travere intends to use the remaining net proceeds from the offering for general corporate purposes, which may include clinical trial and other research and development expenses, commercialization expenses, capital expenditures, working capital and general and administrative expenses.
In its full year 2021 earnings report, Travere said it is on track to submit a New Drug Application for accelerated approval of sparsentan in IgA nephropathy (IgAN) in the first quarter of 2022. The company is also preparing to submit an NDA for accelerated approval of sparsentan for focal segmental glomerulosclerosis (FSGS) and combined IgAN and FSGS Marketing Authorization Application, pending supportive estimated glomerular filtration data from the ongoing phase 3 DUPLEX study.
IgAN is a kidney disorder that occurs when IgA (immunoglobulin A), a protein that helps the body fight infections, settles in the kidneys. IgA nephropathy can occur at any age, even in childhood. After many years, deposits of IgA may cause the kidneys to leak blood and sometimes protein in the urine. In the early stages, IgA nephropathy has no symptoms, and the first sign of this condition may be blood in the urine. After 10 to 20 years, the kidneys may show signs of damage and 20 to 40 percent of adults will develop end-stage kidney disease.
Although IgA nephropathy usually occurs in a family with no other affected members, several cases of familial IgA nephropathy have been reported. Familial IgA nephropathy is suspected to run through families in an autosomal dominant manner and is linked to genetic material on the long arm of chromosome 6. There is no cure for this condition and current treatment focuses on slowing the disease and preventing complications.
FSGS is a rare kidney disorder that is defined by progressive scarring of the kidney and often leads to end-stage kidney disease. FSGS is characterized by proteinuria, where protein leaks into the urine due to a breakdown of the normal filtration mechanism in the kidney. Once in the urine, protein is toxic to other parts of the kidney, especially the tubules, and is believed to contribute to further disease progression. Other common symptoms include swelling in parts of the body, as well as low blood albumin levels, abnormal lipid profiles and hypertension.
In August, Travere reported positive topline interim results from its ongoing pivotal phase 3 PROTECT study of sparsentan, a dual endothelin angiotensin receptor antagonist, for the treatment of IgA nephropathy, in which the treatment group experienced 49.8 percent mean reduction of proteinuria from baseline after 36 weeks, demonstrating a greater than threefold reduction of proteinuria from baseline compared to the active control irbesartan.
In September, Travere Therapeutics licensed rights to commercialize sparsentan to Vifor Pharma in Europe, Australia, and New Zealand for an upfront payment of $55 million and potential milestones of up to $135 million.
Author: Rare Daily Staff
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