FibroGen gets $150 million term loan via Morgan Stanley Tactical

By Marisa Wong

Los Angeles, May 1 – FibroGen, Inc. announced a non-dilutive term loan facility with investment funds managed by Morgan Stanley Tactical Value that will result in proceeds to FibroGen of up to $150 million, according to a press release.

The term loan will be available in three tranches: the initial tranche of $75 million will be funded by May 8; the second tranche of $37.5 million will be funded in the third quarter of 2023 upon achievement of certain clinical development milestones; and Morgan Stanley Tactical Value has the option to fund a third tranche of up to $37.5 million in the third quarter of 2023.

Borrowings will accrue interest at 14%.

The financing provides capital to advance pamrevlumab, an anti-CTGF human monoclonal antibody, toward commercialization and to continue the development of the company’s pre-clinical pipeline.

Morgan Stanley & Co. LLC acted as structuring agent to FibroGen on this transaction, and Goodwin Procter LLP acted as counsel to FibroGen. Gibson, Dunn & Crutcher LLP acted as counsel to the investor.

FibroGen is a biopharmaceutical company based in San Francisco.

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