LANGHORNE, PA — Savara Inc. (Nasdaq: SVRA) has announced a strategic loan and security agreement with Hercules Capital, Inc. (NYSE: HTGC), for up to $200 million. This financing strengthens Savara’s resources following the recent Biologics License Application (BLA) submission to the U.S. Food and Drug Administration (FDA) for MOLBREEVI*, its potential first-in-class treatment for autoimmune pulmonary alveolar proteinosis (aPAP).
“This low-cost capital strategic financing further strengthens our financial position and provides additional flexibility following the BLA submission and as we prepare for a potential commercial launch of MOLBREEVI in the U.S.,” said Matt Pauls, Chair and Chief Executive Officer of Savara.
Key Financial Terms
Under the agreement, $30 million has been funded immediately to repay a $26.5 million existing debt facility. An additional $100 million will become available upon the FDA’s approval of MOLBREEVI and the achievement of certain milestones. The remaining $70 million may be requested by Savara and will be subject to Hercules Capital’s discretion.
The loan agreement has a five-year term, including a 36-month interest-only period, which extends to 60 months if MOLBREEVI receives FDA approval. Importantly, the agreement does not involve any attached warrants, further enhancing its attractiveness.
Strategic Importance
The additional funding ensures Savara is well-positioned to advance MOLBREEVI as it awaits the FDA’s decision on Priority Review, which could potentially lead to approval by the year’s end. The Company also plans to submit a Marketing Authorization Application for MOLBREEVI in Europe by the end of 2025, aiming for regulatory approval in both regions.
“We’re pleased to partner with Hercules Capital as we work to get MOLBREEVI approved in the U.S. and Europe,” Pauls added.
Hercules Capital also emphasized its confidence in Savara’s vision. “We are proud to support Savara during this transformative time for the company,” said Tom Hertzberg, Managing Director at Hercules Capital. “Providing this capital underscores our commitment to helping bring novel and life-changing therapies to market.”
This agreement not only bolsters Savara’s financial stability but also underscores its commitment to delivering innovative treatments for patients with rare lung diseases. With MOLBREEVI under regulatory review and plans for commercial preparation in motion, the company is charting a clear path toward potential global impact in its field.
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