Savara secures $200M loan to support respiratory drug launch

LANGHORNE, Pa. - Savara Inc. (NASDAQ: SVRA), a clinical-stage biopharmaceutical company, has entered into a financing agreement with Hercules Capital, Inc. (NYSE: HTGC), a venture lending firm with a market capitalization of $3.32 billion and strong financial health according to InvestingPro metrics, for a loan of up to $200 million. The funding is aimed at strengthening Savara’s financial position following its recent Biologics License Application (BLA) submission to the U.S. Food and Drug Administration (FDA) for MOLBREEVI, a potential treatment for autoimmune pulmonary alveolar proteinosis (aPAP).

The initial $30 million of the loan was disbursed upon the execution of the agreement, which Savara is utilizing to refinance an existing debt facility of $26.5 million. The agreement also stipulates that an additional $100 million will be available contingent on FDA approval of MOLBREEVI, along with the achievement of certain milestones. The remaining $70 million may be accessed at the discretion of Hercules Capital, subject to the company’s request. Hercules Capital maintains a strong financial position with a current ratio of 2.57 and has demonstrated consistent shareholder returns through its impressive 21-year dividend payment history.

Unlock deeper insights into Hercules Capital’s financial health and investment potential with InvestingPro, which offers exclusive analysis and detailed metrics for over 1,400 US stocks.

Matt Pauls, Chair and CEO of Savara, expressed satisfaction with the partnership, highlighting the strategic financing’s role in bolstering the company’s financial standing post-BLA submission. Pauls also noted that the funding would provide additional flexibility in preparation for the potential commercial launch of MOLBREEVI in the U.S.

Tom Hertzberg, Managing Director at Hercules Capital, underscored the company’s commitment to supporting Savara through this pivotal phase, emphasizing the importance of novel therapies in the market.

The loan has a five-year maturity, featuring an interest-only payment period of 36 months, which can be extended to 60 months upon MOLBREEVI’s FDA approval. Notably, the loan agreement does not include any warrants.

aPAP is a rare lung condition characterized by the accumulation of surfactant within the lungs’ alveoli, leading to breathing difficulties and other serious symptoms. MOLBREEVI, Savara’s lead program, is a recombinant human granulocyte-macrophage colony-stimulating factor (GM-CSF) currently in Phase 3 development. It is delivered through an investigational eFlow® Nebulizer System, specifically designed for inhaling large molecules.

The company remains on track to file the Marketing Authorization Application for MOLBREEVI in Europe by the end of the year. If granted Priority Review by the FDA, the drug could potentially receive approval by year’s end.

This announcement is based on a press release statement from Savara Inc. For investors interested in Hercules Capital’s performance, InvestingPro data shows the company maintains a healthy P/E ratio of 12.01 and offers an attractive dividend yield of 9.8%, with revenue growth of 7.15% in the last twelve months. Access the comprehensive Pro Research Report for detailed analysis and expert insights into HTGC’s investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.