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news.Apnimed has signed a senior secured credit facility of up to $150m with funds managed by HealthCare Royalty Partners (HCRx) to support the planned launch of AD109.
AD109 is designed to improve oxygenation during sleep in people with obstructive sleep apnoea. Credit: daniiD / Shutterstock.com.
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The funding will be used for commercial readiness and the potential US launch of the company’s lead product candidate, AD109, pending approval by the US Food and Drug Administration (FDA).
The oral pill launch is intended for the treatment of obstructive sleep apnoea (OSA).
Apnimed will initially receive $50m at the deal’s closing. An additional $50m tranche is contingent on FDA approval, with a possible third $50m tranche upon reaching a pre-specified sales milestone, subject to customary closing conditions.
The agreement includes a four-year interest-only period, which can be extended to five years on Apnimed achieving a specified net sales milestone.
The company will also pay a synthetic royalty at a low single-digit percentage of net sales of AD109 and certain other specified revenues, consistent with standard terms and conditions.
Apnimed CEO Larry Miller said: “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 US commercialisation of AD109, if approved.”
HealthCare Royalty Partners chairman and CEO Clarke Futch said: “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.”
AD109 is designed to improve oxygenation during sleep by targeting the neuromuscular root cause of upper airway collapse in people with obstructive sleep apnoea.
Apnimed previously announced results from the SynAIRgy and LunAIRo Phase III trials of AD109.
