Soleno Therapeutics, Inc. has just announced a significant financial move, entering into a loan and security agreement with Oxford Finance LLC and its affiliates for up to $200 million. This financing is poised to provide substantial support for anticipated commercial launch activities. The initial draw amounted to $50 million at closing, with an additional $100 million potentially available in three tranches, subject to U.S. Food and Drug Administration (FDA) approval of DCCR (diazoxide choline) extended-release tablets for the treatment of Prader-Willi Syndrome (PWS) and certain commercial milestones. The remaining $50 million may be accessible upon mutual consent.
As of September 30, 2024, Soleno had cash, cash equivalents, and marketable securities totaling $284.7 million. Following the initial draw of $50 million, the pro-forma cash, cash equivalents, and marketable securities stood at $334.7 million as of the same date.
This financing comes at a crucial time for Soleno as the company is focused on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its lead candidate, DCCR extended-release tablets, is currently under review by the FDA and has been granted priority status.
The loan carries an interest-only period of 48 months and a total term of 60 months, with the potential for extension by 12 months if specific milestones are achieved prior to September 30, 2026. The term loans accrue interest at a floating rate equal to 1-month term SOFR plus 5.50%, subject to certain conditions.
Soleno's CEO, Anish Bhatnagar, M.D., highlighted the significance of this financing, emphasizing how it significantly strengthens the company's financial position. This move underscores the company's commitment to advancing its pipeline and bringing novel treatments to patients in need. Following these announcements, the company's shares moved -3.8%, and are now trading at a price of $45.84. If you want to know more, read the company's complete 8-K report here.
