- Eiger nets approx. $11M after repayment of its existing credit facility
- Immediately strengthens the cash position and provides access to additional $35 million in non-dilutive capital on clinical and regulatory milestones
PALO ALTO, Calif., June 7, 2022 /PRNewswire/ — Eiger BioPharmaceuticals, Inc. (Nasdaq: EIGR), a commercial-stage biopharmaceutical company focused on developing innovative therapies to treat and cure hepatitis delta virus (HDV) and other serious diseases, today announced that it has entered into a term loan agreement with an affiliate of Innovatus Capital Partners, LLC (Innovatus) until $75 million and a stock purchase agreement for Innovatus to purchase $5 million shares of the Company. This loan facility and share sale provides for the refinancing of the Company’s existing debt and will support the continued development and commercialization of Eiger’s late-stage pipeline.
“Our collaboration with Innovatus further strengthens Eiger’s balance sheet ahead of significant value creation milestones this year,” said David Cory, President and CEO, Eiger. “Importantly, this agreement extends our cash trail and has the potential to provide access to future non-dilutive capital.”
“We are thrilled to partner with Eiger as it advances its late-stage pipeline of several breakthrough programs for HDV and other serious diseases,” said Claes Ekström, Managing Director and Head of Life Sciences Strategy at Innovatus. “We look forward to supporting the highly accomplished team at Eiger in their mission to develop and commercialize medicines for patients with underserved diseases.”
Following the entering into of the Term Loan Agreement and the Share Purchase Agreement , Eiger retained approximately $11 million in net proceeds. Under the term loan agreement, Eiger has drawn $40 million when closed and used $33.5 million to withdraw its existing credit facility from Oxford Finance. Principal payments on the Oxford facility were to commence from September 1, 2022. In addition, upon closing of the Share Purchase Agreement, Innovatus purchased $5 million ordinary shares of Eiger at the price of $6.6751 per share, which represents the five-day volume-weighted average price prior to entering into the forward loan and share purchase agreements. Eiger has access to up to one $35 million in two tranches, with the availability of both tranches being based on pre-determined regulatory and clinical milestones. The loan has an interest only period of 60 months and a total term of 63 months. Interest is based on a variable rate, of which up to 2.25% may be paid in kind until the third anniversary of the closing date of the term loan agreement.
The Company previously presented the cash, cash equivalents and pro forma investments of $153.5 millionwho understood $132.7 million of the March 31, 2022 and $20.8 million the additional net proceeds from the sale of common shares under the Company’s market sale facility in April 2022. With today’s announcement, the company expects its cash, cash equivalents and total investments to fund planned operations through 2024.
About the Eiger
Eiger is a commercial-stage biopharmaceutical company focused on developing innovative therapies to treat and cure hepatitis delta virus (HDV) and other serious diseases. The Eiger HDV platform includes two first-in-class Phase 3 therapies that target critical host processes involved in viral replication. Eiger is also developing peginterferon lambda as a therapeutic for COVID-19 and has reported positive results from TOGETHER, an investigator-initiated phase 3 study. Eiger’s five rare disease programs have received FDA Breakthrough Therapy designation: lonafarnib and peginterferon lambda for HDV, Zokinvy for progeria, and avexitide for congenital hyperinsulinism and post-bariatric hypoglycemia. For more information about Eiger and its clinical programs, please visit www.eigerbio.com.
About Innovatus Capital Partners, LLC
Innovatus Capital Partners, LLC, is an independent advisor and portfolio management company with approximately $1.7 billion in assets under management. Innovatus adheres to an investment strategy that identifies disruptive and growth opportunities across multiple asset classes with a unifying theme of capital preservation, income generation and upside options. The company has a dedicated team of life science investment professionals with deep experience in healthcare, including life sciences. Innovatus and its executives have significant experience in debt financing medical device, diagnostic and biotechnology companies that address unmet medical needs, improve patient outcomes and reduce overall healthcare expenditures. Further information can be found at www.innovatuscp.com.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding our future financial condition, timing and clinical outcome results, regulatory objectives, business strategy, and plans and objectives for future operations, are forward-looking statements. Forward-looking statements are our current statements regarding our intentions, beliefs, projections, prospects, analyzes or current expectations regarding, among other things, our ability to satisfy obligations under the Term Loan Agreement; our ability to achieve pre-determined regulatory and clinical milestones and access additional amounts under the term loan agreement; the timing of our ongoing and planned clinical development; the availability and adequacy of our cash, cash equivalents and investments to fund our operations through 2024; our ability to fund the continued advancement of our development pipeline products; and the potential for success of each of our product candidates. A variety of important factors could cause actual results or events to differ materially from Eiger’s forward-looking statements, including additional applicable risks and uncertainties described in the “Risk Factors” sections of the Annual Report on Form 10-K for the financial year closed December 31, 2021 and Eiger’s subsequent SEC filings. The forward-looking statements contained in this press release are based on information currently available to Eiger and speak only as of the date on which they are made. Eiger does not undertake and specifically disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise.
Wheelhouse Life Science Advisors
SVP, Corporate Affairs
SOURCEEiger BioPharmaceuticals, Inc.