SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Tricida, Inc. (Nasdaq: TCDA), a pharmaceutical company focused on the development and commercialization of its drug candidate TRC101 (veverimer), a non-absorbed, orally-administered polymer designed to treat metabolic acidosis in patients with chronic kidney disease (CKD), announced today that it has entered into an amendment to its existing debt facility with Hercules Capital, Inc. (NYSE: HTGC), a leader in customizing debt financing for companies in the life sciences and technology-related markets. The amendment increases the total amount available under the debt facility to up to $200 million and extends the maturity of the loans thereunder. Tricida originally entered into a $100 million debt facility with Hercules Capital in February 2018.
“Our new debt facility with Hercules provides Tricida with greater financial flexibility and additional access to capital as we prepare for the potential approval and commercial launch of TRC101 in the second half of 2020,” said Geoff Parker, Chief Financial Officer of Tricida. “We now have the option to drawdown substantial capital following the approval of TRC101 and we have significantly extended the maturity of the facility.”
Under the terms of the amendment, the $40 million currently drawn under Tricida’s existing debt facility with Hercules remains outstanding, and additional tranches of $20 million and $15 million are available for drawdown prior to December 15, 2019 and December 15, 2020, respectively. An additional tranche of $75 million will be available for drawdown between January 1, 2020 and December 15, 2020, subject to FDA approval of TRC101. A final tranche of $50 million will be available for drawdown prior to December 15, 2021, subject to future approval by Hercules. The final maturity date of the debt facility is initially four years from closing of the amendment and is extended to five years if the $75 million tranche is drawn.
“Hercules is pleased to expand and extend our financing partnership with Tricida at this important stage as the company continues to advance its late-stage investigational drug candidate targeting a significant unmet medical need,” said Scott Bluestein, Interim Chief Executive Officer of Hercules and Chief Investment Officer of Hercules. “This structured investment in Tricida represents one of our largest commitments to date and provides another example of the breadth of our platform and our ability to finance life sciences companies through development and into commercialization. We are excited to continue our partnership with the Tricida management team.”
Tricida, Inc. is a pharmaceutical company focused on the development and commercialization of its drug candidate, TRC101, a non-absorbed, orally-administered polymer designed to treat metabolic acidosis in patients with chronic kidney disease (CKD). Metabolic acidosis is a condition commonly caused by CKD that is believed to accelerate the progression of kidney deterioration. It is estimated to pose a health risk to approximately three million patients with CKD in the United States. Tricida has successfully completed all of the clinical trials that it planned to complete prior to submission of an NDA to the U.S. Food and Drug Administration (FDA). Tricida plans to submit an NDA, in the second half of 2019, seeking approval of TRC101 through the FDA’s Accelerated Approval Program.
For more information about Tricida, please visit www.Tricida.com.
Cautionary Note on Forward-Looking Statements
This press release includes forward-looking statements, including for example, statements about our ability to submit an NDA for TRC101 under the FDA’s Accelerated Approval Program. Forward‐looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward‐looking statements. These risks and uncertainties include, among others, our ability to satisfy the conditions of availability under the debt facility with Hercules; the timing of Tricida’s NDA submission; that many drug candidates that have completed Phase 3 trials do not become approved drugs on a timely or cost effective basis or at all; there can be no assurance that the FDA would approve an NDA under the Accelerated Approval Program, or at all, and even if approval for a drug is obtained, there can be no assurance that it will be adopted in the market or accepted as a benefit to patients and healthcare providers; possible safety and efficacy concerns; and that we completely rely on third-party suppliers to manufacture TRC101. The forward-looking statements contained in this press release reflect Tricida’s current views with respect to future events, and Tricida does not undertake and specifically disclaims any obligation to update any forward-looking statements.