MoonLake Secures up to $500 Million in Non-Dilutive Financing from Hercules Capital and Announces a Capital Markets Update on April 29 to Provide Important Clinical Updates
Agreement with Hercules Capital significantly increases financial and operational strength, provides up to $500 million in capital with no dilution to shareholders, an attractive cost of capital and low operational and strategic incumbrances, and sets a new standard for the quantum of a nondilutive facility for a development-stage therapeutics company.
Facility adds to the $448 million cash position disclosed in previously filed 10-K and provides funding for the next steps of the Company's growth, including the expected launch of sonelokimab in 2027, additional clinical trials and further investments for growth.
The Company will hold an in-person and virtual Capital Markets Update on Tuesday, April 29, 2025, in New York, to discuss the Hercules partnership and provide important clinical updates, including the presentation of the baseline characteristics and expected primary endpoint readout date for the Phase 3 VELA program in hidradenitis suppurativa ("HS"), and an earlier-than-expected interim read out of the Phase 2 LEDA study in palmoplantar pustulosis ("PPP").
Zug, Switzerland, April 3, 2025, MoonLake Immunotherapeutics ((MoonLake, NASDAQ:MLTX), a clinical-stage biotechnology company focused on creating next-level therapies for inflammatory diseases, today announced that it has entered into an agreement with Hercules Capital, Inc. (NYSE:HTGC), a leader in customized debt financing for companies in the life sciences and technology-related markets, for up to $500 million in non-dilutive capital, of which $75 million drawn down at close and additional tranches will become available upon achievement of certain pre-specified milestones that are aligned with MoonLake's strategy and funding needs.
The additional capital strengthens MoonLake's balance sheet and provides financial support to rapidly advance sonelokimab and bring to market an investigational ~40 kDa humanized Nanobody® designed to directly target sites of inflammation by inhibiting all relevant IL-17 dimers (namely the IL-17A/A, IL-17A/F, and IL-17F/F dimers) and penetrating difficult-to-reach inflamed tissues.
Matthias Bodenstedt, Chief Financial Officer at MoonLake Immunotherapeutics, said: "We are extremely excited to partner with Hercules Capital that recognizes the value and potential of sonelokimab. We were able to secure deal terms, including a very sizable commitment and a highly competitive cost of capital. This financing facility further bolsters our already robust cash position without diluting our shareholders' stakes and effectively removes any perceived financing overhang as we approach our pivotal data readout for the HS VELA program this summer."
Bryan Jadot, Group Head and Senior Managing Director at Hercules Capital and John Miotti, Principal at Hercules Capital. added: "We are thrilled to partner with MoonLake Immunotherapeutics and support their mission of improving treatment outcomes for patients living with inflammatory diseases. This transaction highlights our commitment to empowering biotech companies as they navigate the critical path from clinical trials to market success"
Capital Markets UpdateThe Company plans to further discuss how the new facility provides financial and operational strength over the coming years and how it impacts its broader financing strategy, and plans to discuss important clinical updates, at an in-person and virtual Capital Markets Update on Tuesday, April 29, 2025 in New York. Further details will be announced closer to the date.
Current Trials and Upcoming Data ReadoutsMoonLake is rapidly progressing a total of eight Phase 2 and Phase 3 clinical trials, plus other ancillary trials and expects to read out pivotal Phase 3 data for HS as of mid-2025. In the upcoming Capital Markets Update, the Company expects to share details on patient baseline characteristics for the VELA program and narrowed guidance with respect to the timing of the primary endpoint read-out, following screening of the last patients. MoonLake also anticipates sharing an interim read out from the Phase 2 LEDA trial of sonelokimab in palmoplantar pustulosis (PPP), the first clinical trial in PPP for an IL-17A and IL-17F inhibitor.
Dr. Jorge Santos da Silva, Chief Executive Officer of MoonLake Immunotherapeutics, said: "The new $500 million facility further strengthens our financial position. With this facility and existing cash balance, we are in control of our financing strategy, and we can drive the advancement of sonelokimab in multiple indications, while building our commercial readiness activities including in the United States. I am confident that narrowed guidance on the VELA primary endpoint readout and the presentation of baseline characteristics will continue to demonstrate our ability to execute and further validate the expectations on sonelokimab. I am very glad that the PPP Phase 2 LEDA trial recruited much faster than anticipated and that we will be able to share data with the market sooner than expected. This will further contribute to building the position of sonelokimab as a high-potential, multi-indication asset that can truly change the lives of patients."
Leerink Partners served as exclusive financial advisor to MoonLake on the term loan financing. Gibson, Dunn & Crutcher LLP and Kellerhals Carrard, served as legal counsel to the Company. DLA Piper LLP and Schellenberg Wittmer served as legal counsel to Hercules Capital.
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About MoonLake Immunotherapeutics
MoonLake Immunotherapeutics is a clinical-stage biopharmaceutical company unlocking the potential of sonelokimab, a novel investigational Nanobody® for the treatment of inflammatory disease, to revolutionize outcomes for patients. Sonelokimab inhibits IL-17A and IL-17F by inhibiting the IL-17A/A, IL-17A/F, and IL-17F/F dimers that drive inflammation. The Company's focus is on inflammatory diseases with a major ...
https://www.benzinga.com/pressreleases/25/04/g44624282/moonlake-secures-up-to-500-million-in-non-dilutive-financing-from-hercules-capital-and-announces-a
