Adaptimmune Secures up to $125 Million Debt Financing with Hercules Capital
Adaptimmune has secured a $125 million debt financing deal with Hercules Capital. The agreement includes an initial $25 million tranche available upon closing and an additional $25 million contingent on the approval of afami-cel. The remaining $75 million will be available subject to certain conditions. This financing aims to bolster the company's balance sheet as it prepares for the commercial launch of afami-cel later this year and lete-cel in 2026. Adaptimmune's CFO, Gavin Wood, expressed confidence in the potential impact of afami-cel on sarcoma treatment. A live webcast will provide further Q1 financial and business updates.
- Adaptimmune secured $125 million in financing, strengthening financial stability.
- Immediate access to $25 million with an additional $25 million upon afami-cel approval.
- Funds will support the commercial launch of afami-cel and future launch of lete-cel.
- Partnership with Hercules Capital seen as a strong endorsement of Adaptimmune's business plan.
- Potential to significantly impact sarcoma treatment with afami-cel.
- Additional $75 million financing is contingent on certain conditions not specified.
- Dependence on afami-cel approval for accessing further funding could pose a risk.
- Potential future debt obligations may impact financial flexibility.
Insights
The $125 million debt financing deal with Hercules Capital considerably boosts Adaptimmune’s balance sheet, offering robust financial support as the company gears up for the commercial launch of afami-cel and later, lete-cel. The structured availability of funds in tranches aligns with milestones like the approval of afami-cel, providing a strategic cushion to manage financial risks associated with product development and market entry.
From a financial perspective, the deal's structured nature mitigates risk by ensuring that funds are accessed as needed based on specific achievements, reducing unnecessary financial burden. The first tranche of $25 million available upon closing, with additional funds contingent upon meeting certain conditions, demonstrates prudent financial planning. This approach aligns well with industry practices where financial backing is tied to regulatory milestones.
For investors, the immediate access to $25 million provides liquidity, while the conditional additional $25 million upon afami-cel’s approval secures future operational needs without over-leveraging the company. This measured approach to financing should be viewed positively as it shows fiscal responsibility and strategic foresight, important for long-term sustainability.
Afami-cel, Adaptimmune's leading cell therapy product for treating synovial sarcoma, represents significant progress in oncology, particularly in the cell therapy domain. Synovial sarcoma is a rare and aggressive cancer with limited treatment options and afami-cel’s potential approval marks a significant milestone for patients and the company.
The financing secured will support not just the commercial launch but also ongoing clinical trials and research needed to optimize and expand therapeutic applications. This financial backing ensures that Adaptimmune can maintain momentum in clinical developments and potentially bring more cell therapies to market.
For retail investors, the focus should be on the clinical efficacy and approval timelines. The conditional tranche tied to afami-cel’s regulatory approval underscores the importance of monitoring FDA decisions and clinical trial outcomes closely. A successful approval can lead to substantial market penetration, while delays could impact financial stability and stock performance.
First tranche of
Philadelphia, Pennsylvania and Oxford, United Kindgom--(Newsfile Corp. - May 15, 2024) - Adaptimmune Therapeutics plc (NASDAQ: ADAP), a company redefining the treatment of solid tumor cancers with cell therapy, today announced that it has entered into a
Gavin Wood, Adaptimmune's Chief Financial Officer: "We are focused on getting products to market starting with afami-cel later this year. We know that afami-cel has the potential to make a tremendous difference for people with sarcoma and we are pleased to partner with Hercules Capital in this transaction to strengthen our balance sheet."
R. Bryan Jadot – Senior Managing Director and Group Head at Hercules Capital: "Hercules is excited to partner with Adaptimmune as they prepare to launch afami-cel and bring this therapy to patients living with synovial sarcoma. We are proud to support Adaptimmune's mission to design and deliver cell therapies to transform the lives of people with cancer."
Jeffrey Ralto – Principal at Hercules Capital: "We are proud to support Adaptimmune mission of developing and commercializing treatments for people with cancer. This financing should help support Adaptimmune's clinical and commercial strategies."
The term loan facility provides for up to
Additional details of the loan agreement will be filed with the Securities and Exchange Commission on a Current Report on Form 8-K.
TD Cowen acted as sole financial advisor to the Company. Ropes & Gray served as legal counsel to Adaptimmune and DLA Piper served as legal counsel to Hercules.
Today's Webcast Details for Adaptimmune's Q1 financial and business updates
A live webcast and replay can be accessed at https://www.gowebcasting.com/13334. Call in information is as follows: 1-800-806-5484 (US or Canada) or +416-340-2217 (International and additional options available HERE) and the passcode is 3025919#. Callers should dial in 5-10 minutes prior to the scheduled start time and simply ask to join the Adaptimmune call.
About Adaptimmune
Adaptimmune is a clinical-stage biopharmaceutical company focused on designing, developing, and delivering cell therapies to transform the lives of people with cancer. The Company's unique engineered T-cell receptor (TCR) platform enables the engineering of T-cells to target and destroy cancers across multiple solid tumor types.
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements involve certain risks and uncertainties. Such risks and uncertainties could cause our actual results to differ materially from those indicated by such forward-looking statements, and include, without limitation: the success, cost and timing of our product development activities and clinical trials and our ability to successfully advance our TCR therapeutic candidates through the regulatory and commercialization processes. For a further description of the risks and uncertainties that could cause our actual results to differ materially from those expressed in these forward-looking statements, as well as risks relating to our business in general, we refer you to our Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended 31 December, 2023, our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date the statements were made and we do not undertake any obligation to update such forward-looking statements to reflect subsequent events or circumstances.
Adaptimmune Contact
Investor Relations
Juli P. Miller, Ph.D. - VP, Corporate Affairs and Investor Relations
T : +1 215 825 9310
M : +1 215 460 8920
Juli.Miller@adaptimmune.com
Media Relations
Dana Lynch, Senior Director of Corporate Communications
M: +1 267 990 1217
Dana.Lynch@adaptimmune.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/208960
FAQ
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