Disc Medicine secures $200M in non-dilutive debt financing

Disc Medicine (IRON) has obtained a $200 million non-dilutive term loan facility from Hercules Capital (HTGC). This financing provides funding options to support anticipated key catalysts, including the expected initiation of a confirmatory study of bitopertin in erythropoietic protoporphyria, a Phase 2 study of DISC-0974 in anemia of myelofibrosis and a multiple dose study in anemia of non-dialysis dependent chronic kidney disease, and a Phase 2 study of DISC-3405 in polycythemia vera. The loan facility consists of up to four tranches, three of which can be drawn at Disc’s option and each maturing in November 2029. The loan facility provides for at least 48-months of interest-only at close, which interest-only period can be extended up to 60 months upon satisfaction of certain milestones. An initial $30 million tranche was funded at closing with an additional $80 million available to be drawn at Disc’s option. An additional $65 million is available subject to the Company’s achievement of specified performance milestones. The final $25 million tranche is available for draw, at Disc’s option and subject to Hercules consent during the interest-only period.Armentum Partners acted as the Company’s exclusive financial advisor on this transaction.