Disc Medicine Secures $200 Million in Non-Dilutive Debt Financing from Hercules Capital, Inc.
Disc Medicine (NASDAQ:IRON) has secured a $200 million non-dilutive term loan facility from Hercules Capital. The financing includes an initial $30 million tranche at closing, with an additional $80 million available at Disc's discretion. The loan facility consists of four tranches maturing in November 2029, with at least 48-months of interest-only period, extendable to 60 months upon meeting certain milestones. The funding will support key developments including a confirmatory study of bitopertin in EPP, Phase 2 studies of DISC-0974 in anemia conditions, and DISC-3405 in polycythemia vera.
Disc Medicine (NASDAQ:IRON) ha ottenuto una linea di credito a termine non diluitiva di 200 milioni di dollari da Hercules Capital. Il finanziamento include una tranche iniziale di 30 milioni di dollari alla chiusura, con ulteriori 80 milioni disponibili a discrezione di Disc. La linea di credito è composta da quattro tranche con scadenza a novembre 2029, con un periodo di soli interessi di almeno 48 mesi, estendibile a 60 mesi al raggiungimento di determinati traguardi. I fondi sosterranno sviluppi chiave, tra cui uno studio di conferma di bitopertin nell'EPP, studi di fase 2 di DISC-0974 nelle condizioni di anemia e DISC-3405 nella policitemia vera.
Disc Medicine (NASDAQ:IRON) ha asegurado una línea de crédito a plazo no dilutiva de 200 millones de dólares de Hercules Capital. El financiamiento incluye un tramo inicial de 30 millones de dólares al cierre, con 80 millones adicionales disponibles a discreción de Disc. La línea de crédito se compone de cuatro tramos que vencen en noviembre de 2029, con un período de solo intereses de al menos 48 meses, ampliable a 60 meses al cumplir ciertos hitos. La financiación apoyará desarrollos clave, incluyendo un estudio confirmatorio de bitopertin en EPP, estudios de fase 2 de DISC-0974 en condiciones de anemia y DISC-3405 en policitemia vera.
Disc Medicine (NASDAQ:IRON)는 Hercules Capital로부터 2억 달러 규모의 비희석 기한 대출 시설을 확보했습니다. 이 자금 조달에는 계약 체결 시 바로 3천만 달러의 초기 분할금이 포함되어 있으며, 추가로 8천만 달러가 Disc의 재량에 따라 사용할 수 있습니다. 이 대출 시설은 2029년 11월 만기되는 네 개의 분할금으로 구성되어 있으며, 최소 48개월의 이자만 지불하는 기간이 있으며, 특정 이정표를 달성하면 60개월로 연장 가능합니다. 이 자금은 EPP에서의 bitopertin 확인 연구, 빈혈 상태에서의 DISC-0974 2상 연구, 다혈구증에서의 DISC-3405 연구를 포함한 주요 개발을 지원할 것입니다.
Disc Medicine (NASDAQ:IRON) a sécurisé un prêt à terme non dilutif de 200 millions de dollars auprès de Hercules Capital. Le financement inclut une tranche initiale de 30 millions de dollars à la clôture, avec un montant supplémentaire de 80 millions de dollars disponible à la discrétion de Disc. La ligne de crédit se compose de quatre tranches arrivant à échéance en novembre 2029, avec une période d'intérêts uniquement d'au moins 48 mois, extensible à 60 mois sous réserve de l'atteinte de certains objectifs. Ce financement soutiendra des développements clés, y compris une étude confirmatoire de bitopertin dans l'EPP, des études de phase 2 de DISC-0974 dans des conditions d'anémie et DISC-3405 dans la polycythémie vera.
Disc Medicine (NASDAQ:IRON) hat eine nicht verwässernde Kreditlinie über 200 Millionen Dollar von Hercules Capital gesichert. Die Finanzierung umfasst einen anfänglichen Tranche von 30 Millionen Dollar bei Vertragsabschluss, mit weiteren 80 Millionen Dollar, die nach Ermessen von Disc zur Verfügung stehen. Die Kreditlinie besteht aus vier Tranchen, die im November 2029 fällig werden, mit einer minimalen Zinszahlungsperiode von 48 Monaten, die auf 60 Monate verlängert werden kann, wenn bestimmte Meilensteine erreicht werden. Die Mittel werden wichtige Entwicklungen unterstützen, darunter eine Bestätigungsstudie zu Bitopertin in EPP, Phase-2-Studien zu DISC-0974 bei Anämiebedingungen und DISC-3405 bei Polycythaemia vera.
- Secured $200M non-dilutive financing, preserving shareholder value
- Flexible draw structure with $80M available at company's discretion
- Extended interest-only period of 48-60 months reduces near-term cash burden
- Strengthens financial position for multiple clinical trials and potential commercialization
- Takes on significant debt obligation maturing in November 2029
- $65M of funding contingent on achieving specific milestones
Insights
This
The financing strengthens Disc's balance sheet without diluting existing shareholders, a important advantage for a clinical-stage biotech. The milestone-based additional tranches of
- Facility significantly increases future financial and operational flexibility
- Up to
$200M available, with$30 million drawn at close and additional$80 million available at Disc’s sole discretion through second-half 2026 - Funding can support development across the portfolio, including the recently announced potential accelerated approval pathway for bitopertin in EPP
WATERTOWN, Mass., Nov. 08, 2024 (GLOBE NEWSWIRE) -- Disc Medicine, Inc. (NASDAQ:IRON), a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of novel treatments for patients suffering from serious hematologic diseases, today announced that it has obtained a
“With this non-dilutive
“Hercules is pleased to partner with Disc in the further development of their hematology pipeline,” said Bryan Jadot, Senior Managing Director and Group Head at Hercules Capital. “We are committed to financing promising life sciences companies to help them achieve their ambitious goals, and we are excited to collaborate with the Disc team ahead of numerous milestones and support them in their next phase of growth.”
The loan facility consists of up to four tranches, three of which can be drawn at Disc’s option and each maturing in November 2029. The loan facility provides for at least 48-months of interest-only at close, which interest-only period can be extended up to 60 months upon satisfaction of certain milestones. An initial
Armentum Partners acted as the Company’s exclusive financial advisor on this transaction.
Additional details of the loan agreement will be filed with the Securities and Exchange Commission on a Current Report on Form 8-K.
About Disc Medicine, Inc.
Disc Medicine (NASDAQ:IRON) is a clinical-stage biopharmaceutical company committed to discovering, developing, and commercializing novel treatments for patients who suffer from serious hematologic diseases. We are building a portfolio of innovative, potentially first-in-class therapeutic candidates that aim to address a wide spectrum of hematologic diseases by targeting fundamental biological pathways of red blood cell biology, specifically heme biosynthesis and iron homeostasis. For more information, please visit www.discmedicine.com.
Disc Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, express or implied statements regarding Disc’s expectations with respect to its potential confirmatory study of bitopertin in EPP, Phase 2 study of DISC-0974 in anemia of MF, multiple dose study in anemia of NDD-CKD, Phase 2 study of DISC-3405 in PV, and its other clinical activities and related timelines; its commercialization preparations; and its financial position and future capital formation options. The use of words such as, but not limited to, “believe,” “expect,” “estimate,” “project,” “intend,” “future,” “potential,” “continue,” “may,” “might,” “plan,” “will,” “should,” “seek,” “anticipate,” or “could” or the negative of these terms and other similar words or expressions that are intended to identify forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on Disc’s current beliefs, expectations and assumptions regarding the future of Disc’s business, future plans and strategies, clinical results and other future conditions. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.
Disc may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and investors should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements as a result of a number of material risks and uncertainties including but not limited to: the adequacy of Disc’s capital to support its future operations and its ability to successfully initiate and complete clinical trials; the nature, strategy and focus of Disc; the difficulty in predicting the time and cost of development of Disc’s product candidates; Disc’s plans to research, develop and commercialize its current and future product candidates; the timing of initiation of Disc’s planned preclinical studies and clinical trials; the timing of the availability of data from Disc’s clinical trials; Disc’s ability to identify additional product candidates with significant commercial potential and to expand its pipeline in hematological diseases; the timing and anticipated results of Disc’s preclinical studies and clinical trials and the risk that the results of Disc’s preclinical studies and clinical trials may not be predictive of future results in connection with future studies or clinical trials and may not support further development and marketing approval; and the other risks and uncertainties described in Disc’s filings with the Securities and Exchange Commission, including in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023, and in subsequent Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it was made. None of Disc, nor its affiliates, advisors or representatives, undertake any obligation to publicly update or revise any forward-looking statement, whether as result of new information, future events or otherwise, except as required by law.
Media Contact
Peg Rusconi
Deerfield Group
peg.rusconi@deerfieldgroup.com
Investor Relations Contact
Christina Tartaglia
Precision AQ
christina.tartaglia@precisionaq.com
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