Tricida Announces $100 Million Venture Debt Financing from Hercules Capital
SOUTH SAN FRANCISCO, Calif., March 2, 2018 (Business Wire)
Tricida, Inc. announced today that it has entered into a $100 million venture debt facility with Hercules Capital, Inc. (NYSE: HTGC), a leader in customizing debt financing for companies in the life sciences and technology-related markets.
“This financing provides Tricida with significant financial flexibility as we continue the development of TRC101 for the treatment of metabolic acidosis in chronic kidney disease patients,” said Geoff Parker, chief financial officer of Tricida. “We are pleased to be working with the Hercules team which has a long history of supporting innovative life science companies.”
“Hercules is pleased to enter into this financing partnership with Tricida at this important stage as it continues to advance its lead investigational drug candidate targeting patients with a significant unmet medical need,” said Scott Bluestein, chief investment officer of Hercules. “This investment in Tricida provides another example of our ability to finance life sciences companies through multiple stages of development and through various value inflection points and we are excited to be partnering with the Tricida management team.”
Tricida drew down $25 million from the venture debt facility at closing. An additional $50 million will be available for drawdown subject to the achievement of future milestones. The remaining $25 million will be available for drawdown subject to approval by Hercules.
Armentum Partners acted as financial advisor to Tricida for the debt transaction. Sidley Austin LLP acted as legal advisor to Tricida.
Tricida, Inc., is a privately-held, late-stage pharmaceutical company focused on the development and commercialization of its lead product candidate, TRC101, a non-absorbed, orally dosed polymer drug 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 progression of kidney deterioration. It can lead to increased muscle wasting, loss of bone density and death. Tricida has successfully completed a Phase 1/2 double-blind, placebo-controlled trial of TRC101 in CKD patients with metabolic acidosis, and recently completed enrollment in a pivotal Phase 3 clinical trial. The results of these trials are intended to serve as the basis for the submission of a U.S. New Drug Application (NDA) for TRC101 under the Accelerated Approval Program of the U.S. Food and Drug Administration (FDA).
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, the ability to drawdown on the venture debt facility, potential therapeutic capabilities, potential medical need and market size, and the expected timeline of development. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. For example, many drug candidates entering Phase 3 trials do not become approved drugs and there can be no assurance that the FDA would approve an NDA under the Accelerated Approval Program. 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.
Geoffrey M. Parker