X4 Pharmaceuticals closes $115 million loan via Hercules Capital

By Wendy Van Sickle

Columbus, Ohio, Aug. 3 – X4 Pharmaceuticals, Inc. closed a $115 million loan facility with Hercules Capital, Inc., according to a press release.

The term loans are available in multiple tranches. X4 may, for a period of time following U.S. approval of mavorixafor in individuals with WHIM syndrome (congenital immune deficiency), draw an additional tranche of up to $20 million. An additional tranche of up to $7.5 million will be available for a period of time following achievement of a certain clinical development-related milestone. The availability of a final tranche of up to $32.5 million in support of X4’s growth initiatives is subject to the approval of the lenders.

The facility refinances $32.5 million in outstanding debt and extends the initial interest-only period and the maturity of existing and future borrowings.

X4 said it drew down $22.5 million upon the transaction’s closing.

“This expanded loan facility creates significant financial flexibility for X4 as we continue preparations for the potential commercial launch of mavorixafor in individuals with WHIM syndrome and continue to advance mavorixafor for certain chronic neutropenic disorders,” Adam Mostafa, chief financial officer of X4 Pharmaceuticals, said in the news release. “The initial draw down not only strengthens our balance sheet on a non-dilutive basis and extends our projected cash runway into 2025, but the overall transaction also creates expanded, future optionality beyond the equity capital markets as we potentially commence product sales and monetize a priority review voucher next year.”

X4 is a clinical-stage biopharmaceutical company based in Cambridge, Mass.

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