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K2 HealthVentures Provides $50MM Credit Facility to Acumen Pharmaceuticals

Date: Nov 13, 2023 @ 07:50 AM
Filed Under: Biopharmaceuticals

Acumen Pharmaceuticals, a clinical-stage biopharmaceutical company developing a novel therapeutic that targets toxic soluble amyloid beta oligomers (“AβOs”) for the treatment of Alzheimer’s disease (“AD”), entered into a senior secured loan and security agreement with K2 HealthVentures, a healthcare-focused specialty finance company.

The Loan Agreement provides up to $50.0 million principal in term loans (the “Term Loan”) consisting of a first tranche of $30.0 million, which was funded at closing, and a second tranche of up to $20.0 million which may be funded in installments upon the Company’s request, subject to review by the lenders of certain information from the Company and discretionary approval from the lenders. The Term Loan matures on November 1, 2027 and may be extended to November 1, 2028 if the Company achieves certain financing milestones. Additional details regarding the Loan Agreement will be included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023.

“We are pleased to announce this agreement with K2 HealthVentures, a life sciences investment firm known for strategic investments in promising healthcare companies,” said Daniel O’Connell, President and Chief Executive Officer of Acumen. “This financing provides us with additional operational flexibility during a period when we are laser-focused on execution. In particular, the funding will support our recently announced development program for a subcutaneous form of ACU193, including a Phase 1 study which we expect to initiate in mid-2024.”

“We are excited to partner with Acumen on this financing to support management’s vision of developing a potential best-in-class treatment for early Alzheimer’s Disease,” said Nimesh Shah, Managing Director at K2 HealthVentures. “This financing follows our strategy of partnering with pioneering life science companies developing treatments that have the potential to transform lives.”

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