MeiraGTx gene therapy biotech is looking to get a quick buck and is setting up its manufacturing facilities to do so.
On Wednesday, the company announced that it had entered into a loan with subsidiaries of Perceptive Advisors for up to $100 million, with the biotech securing $75 million at closing.
According to CEO Alexandria Forbes, the biotech secured the capital by setting up its manufacturing facilities as collateral, which will extend the company’s cash trail for the next two years and into the fourth quarter of 2024. founded by Sam Waksal intends to use the money primarily to further the development of its pipeline, preclinical programs and technology platforms.
“In this market environment where the cost of equity remains high, our 100% owned manufacturing facilities allow us to fund the Company through the achievement of important milestones such as the advancement of our Lumeos Phase III clinical trial. on botaretigene sparoparvovec (AAV-RPGR) for the treatment of X-linked retinitis pigmentosa at the BLA depot, which is fully funded by our partner Janssen,” Forbes said in a statement.
Forbes also clarified that the deal allows the company to fully retain its pipeline programs and genetic medicine platforms.
According to the company, it owns approximately 180,000 square feet of manufacturing space in London and Shannon, Ireland. Their sites contain cell expansion, bulk production virus and downstream purification suites, fill and finish and quality control laboratories and its certified viral vector manufacturing facility, which is located in London. . The two sites employ approximately 180 people.
The term loan agreement will grant the biotech net an immediate $75 million and it can request an additional $25 million over the next two years. The credit facility is interest only for four years, with a maturity date of August 2, 2026, when principal will be due. The company also issued Perceptive Advisors 400,000 shares of common stock, with a price per share of $15. Perceptive can also opt for an additional 300,000 shares at $20 each.
MeiraGTx was riding high a few years ago, securing major partnerships with J&J in 2019. The pharma giant paid $100 million in cash upfront for a deal and is putting an additional $340 million on the table in milestones for its gene therapy portfolio and eventually acquired Hemera Biosciences in 2020 as the two sought to follow Biogen’s gene therapy treatments.
However, since launching its IPO in 2018, the company’s shares have been in freefall, dropping $MGTX since January.