Savara – a clinical-stage biopharmaceutical company focused on rare respiratory diseases – announced that it has entered into a loan and security agreement with Hercules Capital for up to $200 million. And access to the additional capital strengthens Savara’s balance sheet following the submission of the Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA) for MOLBREEVI as a treatment for autoimmune pulmonary alveolar proteinosis (aPAP).
If Priority Review is granted by the FDA, MOLBREEVI could potentially be approved by the end of the year. The Company remains on track to file the Marketing Authorization Application for MOLBREEVI in Europe by the end of the year.
Under the terms of this loan agreement, $30 million was funded on the execution of the agreement and will be used to repay the Company’s existing $26.5 million debt facility. And an additional $100 million will become available upon FDA approval of MOLBREEVI and certain other milestones.
The final $70 million may be made available upon request by the Company and at the discretion of Hercules Capital. And the loan agreement has a maturity of five years, with a 36-month interest-only period that can be extended to 60 months upon achieving FDA approval for MOLBREEVI.
There are no warrants in connection with the agreement.
KEY QUOTES:
“We’re pleased to partner with Hercules Capital as we work to get MOLBREEVI, a potential first-in-class therapy for aPAP, approved in the U.S. and Europe. This low-cost capital strategic financing further strengthens our financial position and provides additional flexibility following the BLA submission and as we prepare for a potential commercial launch of MOLBREEVI in the U.S.”
- Matt Pauls, Chair and Chief Executive Officer, Savara
“We are proud to support Savara during this transformative time for the company. As Savara approaches their first potential approval with MOLBREEVI, providing this capital underscores our dedication and commitment to helping bring novel and life-changing therapies to market.”
- Tom Hertzberg, Managing Director, Hercules Capital
