Apnimed has secured up to $150 million in debt financing from HealthCare Royalty Partners to support the planned U.S. commercial launch of its lead product candidate, AD109, an oral treatment for obstructive sleep apnea.
The agreement includes an initial $50 million at closing, with an additional $50 million available upon potential FDA approval of AD109 and a further $50 million tied to achieving a pre-specified sales milestone. The financing structure provides an interest-only period of four years, extendable to five years if certain sales targets are met, along with a low single-digit synthetic royalty on net sales of AD109 and certain related revenues.
The capital is intended to strengthen the company’s balance sheet and fund commercial readiness activities ahead of a potential launch. Apnimed remains on track to submit a New Drug Application for AD109 to the U.S. Food and Drug Administration later this quarter, supported by positive Phase 3 trial results from its SynAIRgy and LunAIRo studies.
AD109 is designed as a once-daily oral therapy targeting the neuromuscular causes of upper airway collapse in obstructive sleep apnea, a condition affecting tens of millions of people in the United States and approximately one billion worldwide. The therapy combines aroxybutynin and atomoxetine to improve oxygenation during sleep, offering a potential alternative to traditional treatments such as CPAP devices and surgery.
Apnimed, a late-stage clinical pharmaceutical company based in Cambridge, Massachusetts, is focused on developing oral therapies for sleep-related breathing disorders. The company believes AD109 could help establish a new treatment paradigm by simplifying therapy and expanding access for patients with obstructive sleep apnea.
KEY QUOTES:
“HCR is a highly respected healthcare investor with deep experience in credit financing, and their investment represents an important validation of our investigational product, AD109 and its commercial potential. This strategic financing provides significant financial flexibility and supports our continued progress toward the potential U.S. commercialization of AD109, if approved.”
Larry Miller, Chief Executive Officer, Apnimed
“With its focused regulatory and commercial strategy for AD109, a novel oral therapy designed to address the root causes of OSA, we believe Apnimed is uniquely positioned to meaningfully impact the treatment landscape for patients living with this serious disease. We look forward to supporting Apnimed’s continued growth and mission to bring this innovative treatment option to patients as expeditiously as possible.”
Clarke Futch, Chairman and Chief Executive Officer, HealthCare Royalty Partners
