On August 31, 2020 Regulus Therapeutics Inc. (Nasdaq: RGLS), a biopharmaceutical company focused on the discovery and development of innovative medicines targeting microRNAs, reported that pursuant to an amendment of its term loan agreement with Oxford LLC, the Company is eligible for up to an additional seven months of interest only payments in the event the Company pays down $10 million in loan principal before April 30, 2021 (the "Principal Paydown Event") utilizing proceeds from the sale of materials to, and potential milestones received from, Sanofi as described below (Press release, Regulus, AUG 31, 2020, View Source [SID1234564179]). In the event the Principal Paydown Event does not occur by April 30, 2021, the Company will make principal and accrued interest payments, in arrears, commencing May 1, 2021, in accordance with the previously amended terms. If the Principal Paydown Event occurs after April 30, 2021 but on or before July 31, 2021, then the Company will recommence an extended interest only payment period through December 31, 2021. In the event the Company receives the additional interest only period, principal and accrued interest payments will recommence on January 1, 2022.
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Concurrently with the Oxford amendment described above, the Company also entered into an amendment with Sanofi concerning the receipt of potential milestones from Sanofi for its development of miR-21 programs. The Company has also sold additional compound-related materials to Sanofi in exchange for $1 million. Under the terms of the amendment with Sanofi, and in lieu of the previous $10 million enrollment milestone, the Company is eligible to receive an additional $4 million upon the completion of transfer and verification of the materials sold to Sanofi and an additional $5 million milestone upon achievement of the enrollment milestone. In the event the enrollment milestone occurs first, the Company will receive the entire $9 million for both milestones. In addition, the Company is eligible to receive $25.0 million upon the achievement of an additional development milestone related to Sanofi’s development of miR-21 compounds.
"We are pleased to enter into these two amended agreements with our partner, Sanofi, and with our lender, Oxford," stated Jay Hagan, CEO of Regulus. "Their creative support in this restructuring provides Regulus the opportunity to pay down debt principal with Oxford from the proceeds received from Sanofi while potentially extending our interest-only period through the end of 2021."