Liquidia Corporation closed a debt facility on January 7, 2022, with Silicon Valley Bank (SVB) which provides Liquidia with up to $40.0 million in term loans of which the first $20.0 million was funded at closing. Liquidia initially entered a debt facility with SVB in March 2021 that provided up to $20.5 million in term loans of which $10.5 million had been funded to date.
Under the terms of the new debt facility, SVB will make loans available in three tranches. Proceeds from the first tranche of $20.0 million have been used to retire Liquidia’s existing SVB term debt and adds $9.5 million of cash to Liquidia’s balance sheet. The first tranche also provides the option of drawing an additional $5.0 million at Liquidia’s discretion through December 31, 2022. A second tranche of $7.5 million is available to fund immediately upon receipt of final and unconditional approval for YUTREPIA™ (treprostinil) inhalation powder by December 31, 2022. The third tranche of $7.5 million will be available through August 31, 2023, upon generating trailing six-month net product sales of YUTREPIA of $27.5 million by June 30, 2023. The debt facility will mature on December 1, 2025 and will consist of interest-only payments through December 31, 2023, unless the third tranche milestone is achieved, and then interest-only through December 31, 2024.
Michael Kaseta, Chief Financial Officer of Liquidia, said: “We are very pleased to continue our relationship with SVB as we progress towards the potential final approval of YUTREPIA. These initial funds will help support pre-commercial activity and other corporate purposes during 2022, while the additional tranches of debt provide non-dilutive capital at key milestones to ensure a successful launch of YUTREPIA. We expect that the combination of current cash on-hand, the net revenue from our treprostinil injection product offering and this new debt facility will allow us to execute on our current plans through a potential final approval YUTREPIA and, if approval is received, at least the first phase of the YUTREPIA launch.”
Scott McCarty, Director of Life Science and Healthcare at Silicon Valley Bank, said: "We are delighted to continue to support Liquidia in their pursuit of addressing unmet patient needs in the pharmaceutical industry. Their investigational product, YUTREPIA, is a great example of what their PRINT® Technology can accomplish and has the potential to play a significant role in treating PAH."
Liquidia Corporation is a biopharmaceutical company focused on the development and commercialization of products in pulmonary hypertension and other applications of its PRINT® Technology. The company operates through its two wholly owned subsidiaries, Liquidia Technologies, Inc. and Liquidia PAH, LLC. Liquidia Technologies has developed YUTREPIA™ (treprostinil) inhalation powder for the treatment of pulmonary arterial hypertension (PAH). Liquidia PAH provides the commercialization for rare disease pharmaceutical products, such as generic Treprostinil Injection.