Arcutis Biotherapeutics has secured a $225 million term loan facility from funds managed by SLR Capital Partners.
The additional capital will act as a boon to the Arcutis’ balance sheet as it prepares for a potential Food and Drug Administration approval and launch of its topical roflumilast cream for plaque psoriasis.
According to a statement from Arcutis, the financing will also extend the cash runway of the Westlake Village company into 2024.
“SLR is excited to be a long-term partner with Arcutis as they advance topical roflumilast in a number of pivotal Phase 3 development programs and prepare for a commercial launch,” Anthony Storino, SLR’s head of life science finance, said in a statement.
Pursuant the terms of the loan facility, $75 million was drawn at closing. $125 million will become available upon FDA approval of Arcutis’ roflumilast cream and an additional $25 million could be made available if certain revenue milestones are achieved. January 2027 is the loan facility maturity date, with the interest-only period extending for the full five years.
“This additional financing further strengthens our balance sheet at an attractive cost of capital and provides us with enhanced financial flexibility as we prepare for the potential launch of roflumilast cream in 2022, while simultaneously advancing our product candidates through multiple late-stage clinical trials, furthering our mission of bringing innovative treatments to dermatologists and millions of patients with serious skin diseases,” Frank Watanabe, Arcutis’ chief executive, said in a statement.
Shares of Arcutis closed up 72 cents, or nearly 3.6 percent, to $20.94 on the Nasdaq Tuesday, a day when the market closed down a fraction of a percent.