IVERIC bio, Inc. announced that it has entered into a term loan debt financing facility with Hercules Capital, Inc. and Silicon Valley Bank providing the Company with total borrowing capacity of up to $250 million in non-dilutive debt financing.
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“We are grateful to secure this non-dilutive financing as it further strengthens our balance sheet and provides financial flexibility as we look to fund the potential commercial launch of Zimura® (avacincaptad pegol) in geographic atrophy (GA) in the United States, subject to regulatory approval,” stated David F. Carroll, Chief Financial Officer of Iveric Bio. “We look forward to reporting data from GATHER2, our second pivotal clinical trial in GA in September of this year.”
“Hercules is excited to collaborate with Iveric Bio and their team ahead of the company’s GATHER2 data readout for Zimura and its potential commercial launch,” said Kristen Kosofsky, Senior Managing Director at Hercules Capital. “This significant capital commitment from Hercules will help Iveric Bio continue developing Zimura as a potential treatment of choice for GA,” added Michael Dutra, Managing Director at Hercules Capital.
“Iveric Bio is doing important work to advance potential treatments for GA and other retinal diseases,” said Tom Gordon, Managing Director of Life Sciences & Healthcare at Silicon Valley Bank. “We are excited to expand our relationship with the Iveric Bio team to support their next phase of growth.”
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Under the terms of the facility the Company is borrowing $50 million in July 2022, with an additional $150 million in the aggregate being available subject to the Company’s achievement of specified performance milestones relating to development and regulatory events for Zimura and an additional $50 million being available subject to the lenders’ approval.
Additional details of the credit facility agreement are filed with the Securities and Exchange Commission on a Current Report on Form 8-K filed on July 26, 2022.
J Wood Capital Advisors served as financial advisor and WilmerHale served as legal counsel to Iveric Bio in connection with the facility. DLA Piper served as legal counsel to Hercules Capital and Silicon Valley Bank in connection with the facility.
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