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MidCap Financial Inks $60MM Credit Facility With Rigel Pharmaceuticals

October 02, 2019, 09:00 AM
Filed Under: Pharmaceuticals
Related: MidCap Financial

Rigel Pharmaceuticals, Inc. announced that it has entered into a $60 million term loan credit facility with MidCap Financial (MidCap). At closing, $10 million was funded to Rigel in an initial tranche. The facility also gives Rigel the ability to access an additional $50 million, of which $40 million is subject to the achievement of certain customary conditions.

"We are excited to have the support of MidCap as we continue to grow our commercial business and pipeline," said Dean Schorno, Rigel's chief financial officer. "This facility provides Rigel with the flexibility to focus on our financial goals of reaching profitability and creating value for our shareholders."

In addition, the company announced collaboration payments totaling $9 million from the newly signed agreements for fostamatinib commercialization in Canada and Israel with Medison Pharma, and a development milestone payment from Aclaris Therapeutics related to a JAK inhibitor licensed from Rigel.

"Medison Pharma is an excellent partner for fostamatinib in Canada and Israel with proven capabilities in commercializing highly innovative products," said Raul Rodriguez, president and CEO of Rigel. "Today we announced that we have added $19 million to our balance sheet and access to an additional $50 million in non-dilutive financing. We believe this highlights the strength of our business strategy and the added value of our numerous collaborations."

On October 1, 2019, Rigel entered into exclusive commercialization license agreements with Medison Pharma to commercialize fostamatinib in all potential indications in Canada and Israel. Under the terms of the agreements, Rigel will receive an upfront payment of $5 million, which includes an advanced royalty payment, with the potential for approximately $35 million in regulatory and commercial milestones. In addition, the company will receive royalty payments beginning at 30% of net sales after credit for the advanced royalty payment is fulfilled.

On September 19, 2019, Rigel received a $4 million development milestone payment from Aclaris Therapeutics for the achievement of a certain event in accordance with the Rigel and Aclaris License and Collaboration Agreement dated August 27, 2015.

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