ClearPoint Neuro Announces Early Repayment of $10 Million Note

Rhea-AI Summary

ClearPoint Neuro (Nasdaq: CLPT) has announced the early repayment of a $10 million convertible note held by PTC Therapeutics Inc., originally due in January 2025. This strategic move, completed on August 23, 2024, demonstrates the company's financial strength and commitment to reducing debt without diluting shareholder value. Joe Burnett, President and CEO of ClearPoint Neuro, emphasized the importance of this repayment in removing all debt from the balance sheet while maintaining a strong partnership with PTC Therapeutics.

ClearPoint Neuro continues to support PTC's Biologics License Application submission to the FDA for Upstaza™, an investigational treatment for AADC Deficiency currently under priority review. The company reaffirms its position as a global device, cell, and gene therapy-enabling company, offering precise navigation solutions for the brain and spine.

Positive

• Early repayment of $10 million convertible note, eliminating all debt from the balance sheet
• Avoidance of potential shareholder dilution through early debt repayment
• Continued partnership with PTC Therapeutics for Upstaza™ FDA submission

Negative

• None.

Insights

Financial Analyst

ClearPoint Neuro's early repayment of the $10 million convertible note is a positive financial move. It demonstrates the company's strong cash position and confidence in its business outlook. By eliminating debt ahead of schedule, ClearPoint improves its balance sheet and avoids potential dilution of shareholders' equity. This strategic decision could enhance investor confidence and potentially lower the company's cost of capital in the future.

The early repayment also indicates a healthy cash flow, suggesting that ClearPoint's operations are generating sufficient funds to cover both operational needs and debt obligations. This financial flexibility positions the company well for future growth initiatives or potential acquisitions in the competitive medical device and therapy-enabling sector.

Medical Research Analyst

ClearPoint Neuro's continued partnership with PTC Therapeutics for the Upstaza™ BLA submission is significant. Upstaza™, targeting AADC Deficiency, is under FDA priority review, indicating its potential to address an unmet medical need. ClearPoint's navigation technology could play a important role in the precise delivery of this gene therapy, if approved.

The company's involvement in both clinical products and preclinical development services positions it uniquely in the CNS drug delivery space. With thousands of procedures performed using their system, ClearPoint has built a strong track record that could attract more pharmaceutical partnerships, potentially driving future revenue growth and market expansion in the rapidly evolving field of targeted CNS therapies.

SOLANA BEACH, Calif., Aug. 26, 2024 (GLOBE NEWSWIRE) -- ClearPoint Neuro, Inc. (Nasdaq: CLPT) (the “Company”), a global device, cell, and gene therapy-enabling company offering precise navigation to the brain and spine, today announced that on August 23, 2024, it provided for the full early repayment of the principal amount and interest on a $10 million convertible note held by PTC Therapeutics Inc., which would have matured in January 2025 according to its terms. The convertible note was issued by the Company pursuant to a financing transaction which was completed in January 2020.

“PTC has been and continues to be a strong partner of ClearPoint Neuro. The early repayment of our convertible note shows how both companies continue to work together to find a desired outcome,” commented Joe Burnett, President and CEO at ClearPoint Neuro. “This early repayment underlines the confidence we continue to have in our business, and it accomplishes the very important financial and strategic goal of removing all debt from our balance sheet in a way that avoids additional dilution. PTC still maintains the full support of ClearPoint Neuro for the Biologics License Application submission to FDA for Upstaza™ (eladocagene exuparvovec), an investigational treatment for AADC Deficiency currently under priority review by the agency, and we are excited to continue to work with PTC.”

About ClearPoint Neuro

ClearPoint Neuro is a device, cell, and gene therapy-enabling company offering precise navigation to the brain and spine. The Company uniquely provides both established clinical products as well as preclinical development services for controlled drug and device delivery. The Company’s flagship product, the ClearPoint Neuro Navigation System, has FDA clearance and is CE-marked. ClearPoint Neuro is engaged with healthcare and research centers in North America, Europe, Asia, and South America. The Company is also partnered with the most innovative pharmaceutical/biotech companies, academic centers, and contract research organizations, providing solutions for direct CNS delivery of therapeutics in preclinical studies and clinical trials worldwide. To date, thousands of procedures have been performed and supported by the Company’s field-based clinical specialist team, which offers support and services to our customers and partners worldwide. For more information, please visit www.clearpointneuro.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the context of the federal securities laws, which may include the Company’s expectations for the future performance, revenues, and operating expenses, and the adequacy of cash and cash equivalent balances to support operations and meet future obligations. These forward-looking statements are based on management’s current expectations and are subject to the risks inherent in the business, which may cause the Company's actual results to differ materially from those expressed in or implied by forward-looking statements. Particular uncertainties and risks include those relating to: global and political instability, supply chain disruptions, labor shortages, and macroeconomic and inflationary conditions; future revenue from sales of the Company’s products and services; the Company’s ability to market, commercialize and achieve broader market acceptance for new products and services offered by the Company; the ability of our biologics and drug delivery partners to achieve commercial success, including their use of the Company’s products and services in their delivery of therapies; the Company’s expectations, projections and estimates regarding expenses, future revenue, capital requirements, and the availability of and the need for additional financing; the Company’s ability to obtain additional funding to support its research and development programs; the ability of the Company to manage the growth of its business; the Company’s ability to attract and retain its key employees; and risks inherent in the research, development, and regulatory approval of new products. More detailed information on these and additional factors that could affect the Company’s actual results are described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2024, both of which have been filed with the Securities and Exchange Commission. The Company does not assume any obligation to update these forward-looking statements.

FAQ

What significant financial action did ClearPoint Neuro (CLPT) take in August 2024?

ClearPoint Neuro (CLPT) provided full early repayment of a $10 million convertible note held by PTC Therapeutics Inc. on August 23, 2024, which was originally due to mature in January 2025.

How does the early debt repayment benefit ClearPoint Neuro (CLPT) shareholders?

The early repayment of the $10 million note benefits CLPT shareholders by removing all debt from the company's balance sheet and avoiding potential dilution that could have occurred if the note had been converted to equity.

What is ClearPoint Neuro's (CLPT) involvement with PTC Therapeutics' Upstaza™ treatment?

ClearPoint Neuro (CLPT) is supporting PTC Therapeutics' Biologics License Application submission to the FDA for Upstaza™, an investigational treatment for AADC Deficiency currently under priority review.

What are the main products and services offered by ClearPoint Neuro (CLPT)?

ClearPoint Neuro (CLPT) offers the ClearPoint Neuro Navigation System for precise brain and spine navigation, as well as preclinical development services for controlled drug and device delivery in the CNS.