BASEL, Switzerland,
Oct. 16, 2017 /PRNewswire/
-- Myovant Sciences (NYSE: MYOV) today announced
that it has secured up to $140
million in flexible financing commitments from NovaQuest
Capital Management ("NovaQuest") and Hercules Capital, Inc. (NYSE:
HTGC) ("Hercules"). The NovaQuest financing is
comprised of a note purchase commitment of up to $60 million and an equity purchase commitment of
up to $40 million. An additional
$40 million of debt financing
capacity is committed in the form of a term loan facility from
Hercules. Myovant plans to use the proceeds from both financings to
fund the ongoing Phase 3 development of its lead compound relugolix
in uterine fibroids, endometriosis and prostate cancer.
"The financings with NovaQuest and Hercules provide us with
flexible access to capital, allowing us to continue the broad Phase
3 development of relugolix in three indications," said Frank Karbe, Myovant's Chief Financial Officer.
"The flexibility to select the timing and extent to which we use
these financing commitments, gives us the ability to carefully
manage our cost of capital and dilution. We now have cash and
committed funding capacity in excess of $250
million, which puts Myovant in an excellent financial
position."
NovaQuest Financing Commitment
Under the terms of the agreement with NovaQuest, Myovant can
request note purchases of up to $60
million at Myovant's discretion through December 31, 2018, subject to certain terms and
conditions. The notes bear interest at 15% per annum, of which 5%
is payable quarterly, and 10% is payable on a deferred basis. The
notes mature on October 16, 2023.
Commensurate with each note purchase, NovaQuest will also purchase
Myovant common shares with a value equal to one third of the note
purchase amount or up to $20 million
in total. The per share equity purchase price for each purchase
will represent a 5% premium to market at the time of purchase.
Pursuant to the agreement, NovaQuest will initially purchase
$6 million of notes and $2 million of Myovant shares.
Additionally, NovaQuest has committed to purchase up to an
additional $20 million worth of
Myovant shares, at Myovant's discretion through December 31, 2018, subject to certain terms and
conditions, and also subject to a 5% premium to market at the time
of purchase.
Hercules Term Loan Commitment
The Hercules term loan facility provides Myovant an additional
debt financing capacity of up to $40
million. The term loans bear interest at a variable per
annum rate at the greater of the prime rate plus 4.00% or 8.25%.
Upon repayment in full of the term loans, Myovant will pay an
end-of-term charge of 6.55% of the aggregate amount funded. The
term loan matures on May 1, 2021,
with an option for a six-month extension if certain milestones are
met. A first tranche of $25 million
was funded upon closing, and the remaining $15 million is available at Myovant's discretion
through March 31, 2018. At the
closing of each loan tranche, Myovant will issue warrants to
Hercules to purchase a number of common shares equal to 3% of the
loan amount funded, divided by the exercise price.
Further information with respect to the financing agreements
with NovaQuest and Hercules will be contained in a Current Report
to be filed on Form 8-K by Myovant with the Securities and Exchange
Commission.
About Myovant Sciences
Myovant Sciences is a clinical-stage biopharmaceutical company
focused on developing and commercializing innovative therapies for
women's health and endocrine diseases. Myovant's lead product
candidate is relugolix, an oral, once-daily, small molecule that
acts as a GnRH receptor antagonist. Myovant has initiated three
clinical programs for relugolix consisting of five international
Phase 3 clinical trials, two in women with heavy menstrual bleeding
associated with uterine fibroids (LIBERTY 1 & 2), two in women
with endometriosis-associated pain (SPIRIT 1 & 2), and one in
men with advanced prostate cancer (HERO). Myovant is simultaneously
developing MVT-602, a kisspeptin agonist, for the treatment of
female infertility as part of assisted reproduction. Takeda
Pharmaceuticals International AG has granted Myovant an exclusive,
worldwide license to develop and commercialize relugolix (excluding
Japan and certain other Asian
countries where Takeda retains exclusive rights) and an exclusive
license to develop and commercialize MVT-602 in all countries
worldwide. Over time, the company intends to expand its development
pipeline to include other potential treatments for women's health
and endocrine diseases. For more information, please visit the
company's website at www.myovant.com.
Forward-Looking Statements
This press release contains forward-looking statements,
including statements regarding Myovant's ability to obtain funding
under the new financing commitments and plans for the development
of its pipeline and completion of its clinical studies.
Forward-looking statements can be identified by the words
"believe," "anticipate," "continue," "estimate," "project,"
"expect," "plan," "potential," "intends," "will," "would," "could,"
"should" or the negative or plural of these words or other similar
expressions that are predictions or indicate future events, trends
or prospects. Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
and reported results should not be considered as an indication of
future performance. These risks and uncertainties include, but are
not limited to: the terms and conditions of the financing
commitments, which could limit the availability of future funding,
risks associated with the success, cost and timing of our product
development activities and clinical trials, increased regulatory
requirements, and interim results or other preliminary analyses do
not ensure that later or final results in a clinical trial or in
related or similar clinical trials will replicate those interim
results. There can be no assurance that we will obtain future
funding under the new financing commitments or any of our product
candidates will ever receive regulatory approval or be successfully
commercialized.
For a further description of the risks and uncertainties that
could cause actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to Myovant's
business in general, see the "Risk Factors" section of our
quarterly report on Form 10-Q filed with the Securities and
Exchange Commission (SEC) on August 10,
2017, and other filings that Myovant makes with the SEC from
time to time. These forward-looking statements are based on
information available to Myovant as of the date of this press
release and speak only as of the date of this release. Myovant
disclaims any obligation to update these forward-looking
statements, except as may be required by law.
Contact:
DeDe Sheel
Director, Investor Relations
Myovant Sciences, Inc.
650.457.1679
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SOURCE Myovant Sciences