According to Insmed Incorporated, the company has entered into a loan agreement with Hercules Technology Growth Capital that will allow it to access up to $20 million for continued development of Arikace inhaled liposomal amikacin. Hercules received a warrant to purchase 329,932 shares of Insmed common stock at $2.94 per share as part of the agreement.
Insmed recently announced that it would defer a US Phase 3 study of Arikace and focus on three other studies. The company’s President and CEO Timothy Whitten commented, “We project that this loan agreement will extend our cash runway well into 2014. Our focus remains on the timely generation of top-line data from our three prioritized Arikace studies, the CLEAR-108 phase 3 study in cystic fibrosis patients who have pseudomonas lung infections, the TARGET-NTM phase 2 clinical trial for patients who have non-TB Mycobacteria lung infections and the nine month dog toxicity study, all of which are expected to be announced over the course of 2013 as previously outlined.”
The 42-month term loan provided $10 million at closing, with an additional $10 million available through the end of 2012. A 12-month interest only period that begins at closing can be extended if the company meets certain development milestones for Arikace.
Read the Insmed press release.
