Adaptimmune Obtains $125M Debt Financing from Hercules Capital

Adaptimmune Therapeutics plc (NASDAQ: ADAP), a biopharmaceutical company revolutionizing the treatment of solid tumors through cell therapy, has secured a $125 million five-year term loan facility with Hercules Capital, Inc. (NYSE: HTGC). This agreement aims to bolster the company's financial stability as it gears up for the commercial launch of afami-cel for sarcoma later this year, with lete-cel expected to follow in 2026. The company announced these developments during a live webcast on May 15, 2024, where they provided financial and business updates for Q1.

Gavin Wood, Chief Financial Officer of Adaptimmune, emphasized the company's focus on bringing afami-cel to market, highlighting its potential to significantly benefit sarcoma patients. He expressed satisfaction with the partnership with Hercules Capital as a means to strengthen Adaptimmune's financial position. R. Bryan Jadot, Senior Managing Director and Group Head at Hercules Capital, echoed this sentiment, expressing excitement about supporting Adaptimmune's mission to deliver transformative cell therapies to cancer patients. Jeffrey Ralto, Principal at Hercules Capital, added that the financing would facilitate the company's clinical and commercial strategies.

The loan facility is structured to provide up to $125 million in term loans, disbursed in up to five tranches. Upon closing, Adaptimmune can draw an initial $25 million, with eligibility to access an additional $25 million contingent upon afami-cel's approval. Three more tranches, totaling $75 million, will be available under certain conditions over the medium term.

Further specifics of the loan agreement will be detailed in a Current Report on Form 8-K filed with the Securities and Exchange Commission. TD Cowen served as the sole financial advisor to Adaptimmune, with Ropes & Gray providing legal counsel to the company and DLA Piper representing Hercules Capital.

Adaptimmune's live webcast for Q1 financial and business updates was accessible via a provided link, with available call-in options for participants.

Adaptimmune is dedicated to the development and delivery of innovative cell therapies designed to significantly improve the lives of cancer patients. Their proprietary T-cell receptor (TCR) platform enables the modification of T-cells to identify and eradicate various solid tumor types. This breakthrough approach positions Adaptimmune as a frontrunner in the field of cell therapy for cancer treatment.

The company's strategic focus on advancing their sarcoma franchise and securing robust financial backing demonstrates their commitment to bringing life-changing therapies to market. The collaboration with Hercules Capital ensures that Adaptimmune has the necessary resources to execute its clinical and commercial plans effectively, thereby driving forward its mission to transform cancer treatment.