Healthcare

Bryan, Garnier & Co acts as Sole Financial Advisor to Calliditas Therapeutics AB on EUR 92m term loan facility from Athyrium Capital Management

Calliditas is a commercial stage Swedish biotech firm pioneering new treatments for rare diseases.

Nefecon—Calliditas’s commercialized drug marketed as TARPEYO® in the US and KINPEYGO in Europe—is a medication used to reduce levels of protein in the urine (proteinuria) in adults with a kidney disease called primary immunoglobulin A nephropathy (IgAN).
TARPEYO is now the first fully FDA-approved treatment for IgAN based on a measure of kidney function and has received conditional marketing authorization from the EMA.

Calliditas had an existing USD 75m loan which was due to begin amortizing in January 2024. The company aimed to obtain financing to refinance its current debt, extend the interest-only period and strengthen its cash reserves. This financial strategy aimed to support the commercialization of TARPEYO® in the United States and advance the development of its clinical pipeline. Calliditas engaged Bryan Garnier to provide debt financing that pushed out the debt repayment.

Additionally, the company is expecting three Phase 2 read-outs in its late stage pipeline in 2024, potentially leading to further opportunities to create value.

Bryan Garnier advised on and negotiated a EUR 92m term loan facility for Calliditas to refinance existing indebtedness and provide additional non-dilutive growth capital.

Bryan Garnier ran a process among a group of notable healthcare direct lenders in the US and Europe to find the best loan structure for the company. The entire loan was drawn up-front with proceeds used to repay an existing USD 75m senior, secured loan. Key highlights of the term loan:

  • A fixed interest rate, as the company had sought certainty over the interest to be paid in a more uncertain market environment for interest rates.
  • A four-year term with partial amortization commencing at the end of the third year and a bullet repayment at maturity.
  • A bespoke approach to covenants and security which provided the management with the flexibility needed to operate the company to create maximum value.

Calliditas Therapeutics is a commercial stage biopharma company based in Stockholm, Sweden focused on identifying, developing and commercializing novel treatments in orphan indications, with an initial focus on renal and hepatic diseases with significant unmet medical needs.

Calliditas’ lead product, developed under the name NEFECON®, has been approved by the US FDA for adults with primary immunoglobulin A nephropathy (IgAN) at risk for disease progression under the trade name TARPEYO® and has been granted conditional marketing authorization by the European Commission under the trade name Kinpeygo®.

Kinpeygo is being commercialized in the European Union Member States by Calliditas’ partner, STADA Arzneimittel AG. NEFECON has also been approved by China’s National Medical Products Administration and is being commercialized in China and other Asian countries by Everest Medicines (HKEX: 1952.HK).

Additionally, Calliditas is conducting a Phase 2b clinical trial in primary biliary cholangitis and a Phase 2 proof-of- concept trial in head and neck cancer with its NOX inhibitor product candidate, setanaxib. Calliditas’ common shares are listed on Nasdaq Stockholm (ticker: CALTX) and its American Depositary Shares are listed on the Nasdaq Global Select Market (ticker: CALT).

Athyrium is a specialized asset management company formed in 2008 to focus on investment opportunities in the global healthcare sector. Athyrium advises funds with over $4.6 billion in committed capital. The Athyrium team has substantial investment experience across a wide range of asset classes including public equity, private equity, fixed income, royalties, and other structured securities. Athyrium invests across all healthcare verticals including biopharma, medical devices and products, healthcare focused services, and healthcare information technology. The team partners with management teams to implement creative financing solutions to companies’ capital needs.