Axsome Therapeutics Inc. (NASDAQ: AXSM) has announced the amendment of its current term loan facility agreement with Hercules Capital Inc. (NYSE: HTGC).
Axsome increases its loan facility to $300 million
The company amended the facility to increase its size to $300 million. The amount will be available once the FDA approves AXS-05 for a major depressive disorder to $100M at Company’s option. Equally, the amendment extends the interest and maturity period of the facility.
Axsome’s Chief Executive Officer Herriot Tabuteau said, “We are pleased with the amendment to our term loan facility, resulting in $100 million of non-dilutive capital immediately available upon the potential approval of AXS-05 and access to an additional $150 million thereafter. With improved financial terms, this committed capital further increases our financial flexibility through the anticipated commercial launches of AXS-05 for major depressive disorder and AXS-07 for migraine and will allow Axsome to accelerate access to these critical therapies for millions of patients in need.”
According to amendment terms, the facility size was increased from $225 million to $300 million, and the amount will be available after AXS-05’s approval in major depressive disorder to $100 million. In addition, the company may draw an additional $150 million at the Company’s option in tranches of $20 million after AXS-07’s approval for migraine, $55 million after achieving certain milestones, and $75 million subject to Hercules’s approval to support strategic initiatives that include advancement and expansion of the pipeline.
Axsome has NDAs for AXS-05 in depression and AXS-07 in migraine under review
Hercules Capital Managing Director Michael Dutra said, “Hercules is excited to expand its partnership with Axsome, which has two NDAs under review for AXS-05 in depression and AXS-07 in migraine, as it advances its differentiated pipeline and prepares for commercialization. This substantial financial commitment from Hercules exemplifies our dynamic ability to customize financing solutions to support innovative life sciences companies, such as Axsome, through development and commercialization.”
