Tricida Announces $125 Million Credit Facility with Hercules Capital

SOUTH SAN FRANCISCO, Calif.–(BUSINESS WIRE)–Tricida, Inc. (Nasdaq: TCDA) today announced that it has entered into a credit facility with Hercules Capital, Inc. (NYSE: HTGC), a leader in customizing debt financing for businesses in the life science and related technology markets. The aggregate amount of the credit facility is $125 million, of which $100 million may be drawn at Tricida’s option subject to the achievement of certain milestones.

“As we prepare to release key results from the VALOR-CKD renal outcome trial this month, we want to ensure that we are positioned both financially and strategically to move forward with a potential new NDA submission. , potential FDA approval and subsequent commercialization of veverimer,” said Geoff Parker, Chief Operating Officer and Chief Financial Officer of Tricida. “This credit facility gives us additional flexibility in our future financing plans.”

Under the terms of the credit facility, $25 million may be drawn until December 31, 2022, subject to the announcement of positive data from the VALOR-CKD trial. An additional $25 million will be available for drawdown until the first of ten business days after the NDA is filed for November 15, 2023. An additional $50 million will be available for drawdown until first of ten business days following FDA approval. de veverimer and on February 15, 2024. An additional amount of $25 million may be drawn until December 15, 2024, subject to the approval of the Hercules investment committee.

Under the loan agreement, the loans bear interest at a variable annual interest rate equal to the greater of 8.75% or the lesser of 8.75% plus the prime rate published in the Wall Street Journal less 6 .25% and 10.25%.

The loan repayment schedule provides for interest-only payments through August 1, 2024. The interest-only period date may be extended to November 1, 2026, following FDA approval of the verimer. The final maturity date of the loan agreement is November 1, 2025. Subject to certain conditions being met, the final maturity date may be extended for up to two additional years.

“Hercules is delighted to enter into this funding partnership with Tricida at this important juncture as it continues to advance veverimer to address a significant unmet medical need,” said Scott Bluestein, CEO and Chief Investment Officer of Hercules. “This structured investment in Tricida provides the Company with additional non-dilutive capital as it pursues the development of veverimer, which has the potential to address a significant unmet medical need in the treatment of patients with metabolic acidosis and metabolic acidosis. ‘IRC. We are delighted to once again partner with the Tricida management team. »

About Tricida

Tricida, Inc. is a pharmaceutical company focused on the development and commercialization of its investigational drug candidate, veverimer, an unabsorbed orally administered polymer designed to slow the progression of CKD in patients with metabolic acidosis and IRC. Tricida recently completed a renal outcome clinical trial, VALOR-CKD, to determine whether veverimer slows the progression of CKD in patients with CKD-associated metabolic acidosis. Metabolic acidosis is a common condition caused by CKD and is thought to accelerate the progression of kidney deterioration. It is estimated to pose a health risk to approximately 4.3 million CKD patients in the United States. There are currently no FDA-approved treatments to slow the progression of kidney disease by correcting chronic metabolic acidosis in patients with CKD.

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Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements, including, for example, statements regarding the company’s plans and expectations regarding the estimated timeline for receipt of frontline data from the VALOR-CKD trial and the possibility of a resubmission of an NDA for veverimer, the possibility of FDA approval of veverimer, if any, potential commercialization of veverimer, and its expectations regarding future financial requirements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the ability of the VALOR-CKD trial to meet its primary endpoint and that the data from this trial are sufficient to support the resubmission and /or NDA approval; the time and cost required to obtain regulatory approvals for the veverimer; Tricida’s ability to obtain veverimer approval through the traditional approval process; costs associated with delays in regulatory approval and resubmission of Tricida’s NDA, and any increased costs associated with raising capital in light of such delays; and risks associated with the Company’s business prospects, financial results and business activities.

These and other factors that could affect the Company’s future results of operations are identified and further described in our filings with the Securities and Exchange Commission (the “SEC”). You should not place undue reliance on these forward-looking statements. The forward-looking statements contained in this press release reflect Tricida’s current views with respect to future events, and Tricida does not undertake and specifically disclaims any obligation to update any forward-looking statements.

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