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.”
About Tricida
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.
Contacts
Jackie Cossmon, IRC
Tricida, Inc.
Vice President of Investor
Relations and Communications
IR@Tricida.com