Savara (SVRA) said Wednesday it entered into a loan and security agreement of up to $200 million with Hercules Capital (HTGC).
The debt financing strengthens Savara's balance sheet following its filing of a biologics license application with the US Food and Drug Administration for Molbreevi to treat autoimmune pulmonary alveolar proteinosis, a rare lung disease, the company said.
If the FDA grants priority review, Molbreevi could be approved by the end of the year, Savara said, adding that it is also on track to file a marketing authorization application in Europe by year-end.
Savara said $30 million was funded at the execution of the agreement and will be used to repay an existing $26.5 million debt facility. An additional $100 million will be available upon Molbreevi's FDA approval and other milestones.
The final $70 million may be made available at Hercules Capital's discretion upon Savara's request, according to the company.
Shares of Savara were up nearly 2% in after-hours trading.
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