Mineralys Therapeutics (MLYS) to Repurchase Potential Royalties for Lorundrostat

Mineralys Therapeutics Inc. (NASDAQ:MLYS) is one of the 10 best AI driven biotech stocks to invest in.

On June 3, Mineralys Therapeutics (NASDAQ:MLYS) shared a major update regarding its blood pressure drug, lorundrostat. The company is repurchasing its potential royalty payments from Tanabe Pharma Corporation. Mineralys is paying $200 million upfront and up to $100 million later based on commercial milestones.

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This moves their total possible future milestone payments to Tanabe up to $265 million, which includes the $100 million in new milestones and $165 million in old milestones, with up to $10 million tied to a second indication. Tanabe will also hand over the intellectual property rights for the drug.

To fund this, Mineralys initiated a $500 million agreement for a senior secured term loan with Pharmakon Advisors that matures in June 2031. They are getting $100 million of that debt immediately at closing, and the rest will come in three separate tranches. The interest rate is based on SOFR with a 3.25% floor, plus a 5.50% annual margin. On top of the loan, Mineralys also priced a separate stock offering to sell about $150 million of its common stock to help cover the upfront costs.

Mineralys Therapeutics Inc. (NASDAQ:MLYS) engages in the development of therapeutics that target illnesses caused by dysregulated aldosterone. It is working on the development of lorundrostat, an aldosterone synthase inhibitor for cardiorenal conditions. These include chronic kidney disease, hypertension, and obstructive sleep apnea.

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