Disc Medicine, a clinical-stage biopharmaceutical company focused on the discovery, development, and commercialization of novel treatments for patients suffering from serious hematologic diseases, has obtained a $200 million non-dilutive term loan facility from Hercules Capital, a leader in customized debt financing for companies in the life sciences and technology-related markets. This financing provides funding options to support anticipated key catalysts, including the expected initiation of a confirmatory study of bitopertin in erythropoietic protoporphyria (EPP), a Phase 2 study of DISC-0974 in anemia of myelofibrosis (MF) and a multiple dose study in anemia of non-dialysis dependent chronic kidney disease (NDD-CKD), and a Phase 2 study of DISC-3405 in polycythemia vera (PV).
“With this non-dilutive $200 million financing, we are well-positioned as we prepare for upcoming catalysts across our entire pipeline including the potential initiation of a confirmatory trial of bitopertin in EPP by mid-2025 and related commercial preparations,” said Jean Franchi, Chief Financial Officer of Disc. “Not only does this non-dilutive financing strengthen what we believe to be an already strong financial position, it provides optionality and strategic flexibility in future capital formation as we continue to advance our pipeline in pursuit of our mission to deliver innovative treatments to patients suffering from serious hematologic diseases.”
“Hercules is pleased to partner with Disc in the further development of their hematology pipeline,” said Bryan Jadot, Senior Managing Director and Group Head at Hercules Capital. “We are committed to financing promising life sciences companies to help them achieve their ambitious goals, and we are excited to collaborate with the Disc team ahead of numerous milestones and support them in their next phase of growth.”
The loan facility consists of up to four tranches, three of which can be drawn at Disc’s option and each maturing in November 2029. The loan facility provides for at least 48-months of interest-only at close, which interest-only period can be extended up to 60 months upon satisfaction of certain milestones. An initial $30 million tranche was funded at closing with an additional $80 million available to be drawn at Disc’s option. An additional $65 million is available subject to the Company’s achievement of specified performance milestones. The final $25 million tranche is available for draw, at Disc’s option and subject to Hercules consent during the interest-only period.
Armentum Partners acted as the Company’s exclusive financial advisor on this transaction.