Apnimed secures $150M in debt financing ahead of planned launch of pill to treat OSA

CAMBRIDGE, Mass. – Apnimed, a pharmaceutical company developing oral therapies for obstructive sleep apnea (OSA), has entered into a senior secured credit facility for up to $150 million with funds managed by HealthCare Royalty Partners (HCRx). The company plans to use the capital to support commercial readiness activities and the planned U.S. launch of its lead product candidate, AD109, if approved by the U.S. Food and Drug Administration (FDA). "HCR is a highly respected health care investor with deep experience in credit financing, and their investment represents an important validation of our investigational product, AD109 and its commercial potential," said Larry Miller, CEO of Apnimed. "This strategic financing provides significant financial flexibility and supports our continued progress toward the potential U.S. commercialization of AD109, if approved." Under the terms of the agreement, Apnimed will receive $50 million at closing. An additional $50 million tranche will become available upon FDA approval of AD109, and the company may access a third $50 million tranche upon achievement of a pre-specified sales milestone, subject to customary closing conditions. The financing includes an interest-only period of four years, which is extended to five years, if Apnimed achieves a specified net sales milestone. Apnimed also agreed to pay a synthetic royalty equal to a low single-digit percentage of net sales of AD109 and certain other specified revenues, subject to customary terms and conditions. Apnimed previously reported positive results from the pivotal SynAIRgy and LunAIRo Phase 3 trials for AD109, which will support the planned submission of a New Drug Application (NDA) to the U.S. Food and Drug Administration, expected later this quarter.

• Related: Apnimed receives $100M for joint venture.