School loan

Phathom Pharmaceuticals secures $200 million term loan

FLORHAM PARK, NJ, Sept. 20, 2021 (GLOBE NEWSWIRE) — Phathom Pharmaceuticals, Inc. (Nasdaq: PHAT), a late-stage clinical-stage biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal diseases, today announced that it has secured a $200 million term loan facility from Hercules Capital, Inc. (NYSE: HTGC), a leader in tailored debt financing for life sciences and technology-related markets. This additional capital further strengthens Phathom’s balance sheet ahead of key catalysts expected, including data from the pivotal Phase 3 PHALCON-EE trial of vonoprazan for the treatment of erosive esophagitis in October 2021, trial data phase 2 of vonoprazan for the treatment of non-erosive reflux in the first quarter of 2022, and FDA approval and commercial launch of vonoprazan-based regimens for the treatment of H. pylori in the second half of 2022. This non-dilutive financing extends Phathom’s projected cash trail to mid-2023 based on the Company’s current operating plans.

“Vonoprazan has the potential to become the first innovative treatment for patients with acid-related disorders approved in the United States in more than thirty years,” said Terrie Curran, President and CEO of Phathom. “This $200 million non-dilutive term loan facility significantly strengthens our balance sheet ahead of the potential commercial launch of vonoprazan in the United States and provides Phathom with additional financial flexibility as we continue to work to change the patient landscape. gastrointestinal diseases.”

“Hercules is proud to partner with Phathom ahead of several important milestones as they advance their vonoprazan development programs and prepare for a potential commercial launch,” said Bryan Jadot, Senior Managing Director and Group Head of Science life at Hercules Capital. “Hercules’ substantial capital commitment is intended to help Phathom fulfill its important mission of improving the lives of people suffering from acid-related gastrointestinal diseases and reflects our commitment to funding promising life science companies. life,” added Lake McGuire, Managing Director of Hercules Capital.

Under the terms of the $200 million term loan facility, $100 million was drawn at closing and an additional $100 million becomes available in two tranches of $50 million each. The first tranche of $50 million becomes available upon receipt of positive data from the Phase 3 PHALCON-EE trial. The second tranche of $50 million becomes available upon FDA approval of a vonoprazan-based regimen for the treatment of H. pylori and the FDA’s acceptance of a new drug application for vonoprazan for the treatment of erosive esophagitis. Approximately $54 million of the $100 million initially drawn by the company will be used to repay the principal of the company’s outstanding term loan. The new facility provides for a three-year interest-only period, which may be extended subject to the achievement of certain regulatory milestones. The loan facility is secured by the assets of the Company.

Armentum Partners acted as exclusive financial advisor to the Company in connection with this transaction.

Additional details of the loan agreement will be filed with the Securities and Exchange Commission in a current report on Form 8-K.

About Phathom
Phathom Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal diseases and disorders. Phathom has licensed exclusive rights in the United States, Europe and Canada to vonoprazan, a novel competitive potassium acid (P-CAB) inhibitor in late-stage development for the treatment of acidity. For more information about Phathom, visit the company’s website at www.phathompharma.com or follow the Company on social networks: LinkedIn at www.linkedin.com/company/phathompharma and Twitter @PhathomPharma.

Forward-looking statements

Phathom cautions you that statements in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the Company’s current beliefs and expectations. These forward-looking statements include, but are not limited to, statements regarding: the potential acceptance and approval by the FDA of our NDAs for vonoprazan; our plans to commercially launch vonoprazan in the second half of 2022; and our anticipated cash trail. The inclusion of forward-looking statements should not be taken as a representation by Phathom that any of its plans will be realized. Actual results may differ from those presented in this press release due to risks and uncertainties inherent in Phathom’s business, including, but not limited to: the FDA may disagree that the data on safety and efficacy are sufficient to accept or approve the NDAs; the risks inherent in the clinical development of vonoprazan; Phathom’s reliance on third parties for product manufacturing, research and preclinical and clinical testing; regulatory developments in the United States and foreign countries; unexpected adverse side effects or inadequate efficacy of vonoprazan which may limit its development, regulatory approval and/or commercialization, or which may lead to recalls or product liability claims; Phathom’s ability to obtain and maintain intellectual property protection for vonoprazan; Phathom’s ability to comply with its license agreement with Takeda; Phathom’s ability to maintain uninterrupted business operations due to the COVID-19 coronavirus, including delaying or otherwise disrupting its clinical trials, manufacturing and supply chain; and other risks described in the Company’s prior press releases and the Company’s filings with the Securities and Exchange Commission (SEC), including under the heading “Risk Factors” in the Company’s annual report on Form 10-K and in all subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Phathom undertakes no obligation to update these statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

CONTACTS
Media Contact:
Nicholas Benedetto
1-877-742-8466
[email protected]

Investor contacts:
Joe Hand
1-877-742-8466
[email protected]