Arcus Biosciences Secures Up to $250 Million Term Loan Facility from Hercules Capital
27 Agosto 2024 - 3:05PM
Business Wire
- Facility adds operational flexibility and provides funding for
the recently announced Phase 3 PEAK-1 study for casdatifan.
- $150 million committed, of which $50 million was drawn at
closing and the remaining $100 million available at Arcus's sole
discretion.
Arcus Biosciences, Inc. (NYSE:RCUS), a clinical-stage, global
biopharmaceutical company focused on developing differentiated
molecules and combination therapies for people with cancer, today
reported it has obtained a $250 million term loan facility from
Hercules Capital, Inc. (NYSE: HTGC), a leader in customized debt
financing for companies in life sciences and technology-related
markets. The additional capital strengthens Arcus’s balance sheet
and increases flexibility to rapidly advance casdatifan, its
potential best-in-class HIF-2a inhibitor. Arcus plans to present
data from ARC-20, its Phase 1/1b study of casdatifan in clear cell
renal cell carcinoma (ccRCC), later this year.
“2024 has been an exciting year for us, with the completion of
enrollment of STAR-221, our first Phase 3 study for domvanalimab,
our Fc-silent anti-TIGIT antibody, in upper GI cancers and the
rapid enrollment of the expansion portion of ARC-20, our Phase 1/1b
study of casdatifan, our HIF-2a inhibitor,” said Terry Rosen,
Ph.D., chief executive officer of Arcus. “This non-dilutive
facility enhances our already strong cash position and enables us
to expand and accelerate our development program for casdatifan
across multiple settings in ccRCC.”
“Hercules is pleased to enter into this financial partnership
with Arcus to help finance the company’s broad pipeline of oncology
programs as well as meet its near- and long-term strategic goals,”
said Cristy Barnes, managing director at Hercules Capital.
Under the terms of the term loan facility, $50 million was drawn
at closing and an additional $100 million is committed and fully
available at Arcus’s sole option in minimum increments of $25
million. A second tranche of $100 million will be available to
support strategic initiatives, subject to future approval by
Hercules. The term loan matures in five years and maturity is
extendable to six years upon the initiation of Phase 3 trials for
casdatifan and quemliclustat. The facility provides for an
interest-only period of four years, which is extendable to five
years based on the achievement of certain regulatory milestones.
The loan facility is secured by substantially all the company’s
assets, excluding those covered by its existing collaboration
agreements.
J. Wood Capital Advisors served as sole financial advisor to the
company. Latham & Watkins LLP served as legal counsel to the
company. Morrison & Foerster LLP served as legal counsel to
Hercules Capital.
About Arcus Biosciences
Arcus Biosciences is a clinical-stage, global biopharmaceutical
company developing differentiated molecules and combination
medicines for people with cancer. In partnership with industry
collaborators, patients and physicians around the world, Arcus is
expediting the development of first- or best-in-class medicines
against well-characterized biological targets and pathways and
studying novel, biology-driven combinations that have the potential
to help people with cancer live longer. Founded in 2015, the
company has expedited the development of multiple investigational
medicines into clinical studies, including new combination
approaches that target TIGIT, PD-1, the adenosine axis (CD73 and
dual A2a/A2b receptor), HIF-2a, CD39, and AXL. For more information
about Arcus Biosciences’ clinical and preclinical programs, please
visit www.arcusbio.com.
Domvanalimab, etrumadenant, quemliclustat, and zimberelimab are
investigational molecules, and neither Gilead nor Arcus has
received approval from any regulatory authority for any use
globally, and their safety and efficacy have not been established.
Casdatifan, AB598 and AB801 are also investigational molecules, and
Arcus has not received approval from any regulatory authority for
any use globally, and their safety and efficacy have not been
established.
Forward-Looking Statements
This press release contains forward-looking statements. All
statements regarding events or results to occur in the future
contained herein are forward-looking statements reflecting the
current beliefs and expectations of management made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, including, but not limited to, the statements in Dr.
Rosen’s quote and statements regarding: plans or expectations to
disclose or present study analyses or data, including any analyses
or data from ARC-20; the advancement of casdatifan across multiple
settings and through Phase 3 development; the availability and use
of the full term loan facility, including the second $100 million
tranche. All forward-looking statements involve known and unknown
risks and uncertainties and other important factors that may cause
Arcus’s actual results, performance or achievements to differ
significantly from those expressed or implied by the
forward-looking statements. Factors that could cause or contribute
to such differences include, but are not limited to risks
associated with: the lender under the term-loan facility approving
Arcus’s access to the second tranche of $100 million; preliminary
and interim data not being guarantees that future data will be
similar; the unexpected emergence of adverse events or other
undesirable side effects in Arcus’s investigational products;
difficulties or delays in initiating or conducting clinical trials
due to difficulties or delays in the regulatory process, enrolling
subjects or manufacturing or supplying product for such clinical
trials; unfavorable global economic, political and trade
conditions; changes in the competitive landscape for Arcus’s
programs; and the inherent uncertainty associated with
pharmaceutical product development and clinical trials. Risks and
uncertainties facing Arcus are described more fully in the “Risk
Factors” section of Arcus’s most recent periodic report filed with
the U.S. Securities and Exchange Commission. You are cautioned not
to place undue reliance on the forward-looking statements, which
speak only as of the date of this press release. Arcus disclaims
any obligation or undertaking to update, supplement or revise any
forward-looking statements contained in this press release except
to the extent required by law.
The Arcus name and logo are trademarks of Arcus Biosciences,
Inc. All other trademarks belong to their respective owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20240827671936/en/
Investor Inquiries: Pia Eaves VP of Investor Relations
& Strategy (617) 459-2006 peaves@arcusbio.com
Media Inquiries: Holli Kolkey VP of Corporate
Communications (650) 922-1269 hkolkey@arcusbio.com
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