Apnimed, Inc. has secured a senior secured credit facility of up to $150 million from funds managed by HealthCare Royalty Partners, providing a major financial boost as the company prepares for the potential U.S. launch of its lead therapy for obstructive sleep apnea (OSA).
The financing agreement is structured in three tranches. Apnimed will receive an initial $50 million upon closing, while a second $50 million will become available upon regulatory approval of its lead drug candidate, AD109, by the U.S. Food and Drug Administration. A third tranche of $50 million is tied to the achievement of a pre-defined sales milestone, offering additional capital as the company scales commercialization efforts.
The credit facility includes an interest-only repayment period of four years, which may be extended to five years if Apnimed meets certain net sales targets. As part of the agreement, the company will also pay a synthetic royalty consisting of a low single-digit percentage of net sales from AD109 and certain related revenues.
The funding is expected to support commercial readiness activities and the anticipated market introduction of AD109, an investigational oral therapy designed to treat the root causes of obstructive sleep apnea. Unlike traditional therapies such as continuous positive airway pressure (CPAP) devices, AD109 aims to provide a more convenient, patient-friendly alternative.
Apnimed’s CEO, Larry Miller, described the financing as a strong endorsement of the company’s lead program and its commercial potential. He noted that the agreement enhances the company’s financial flexibility as it moves closer to regulatory submission and potential launch.
HealthCare Royalty Partners’ Chairman and CEO, Clarke Futch, also expressed confidence in Apnimed’s approach, highlighting the company’s focused regulatory and commercialization strategy. He emphasized that AD109 has the potential to significantly improve treatment options for patients living with OSA, a condition that affects millions worldwide and is often underdiagnosed or undertreated.
Apnimed has already reported positive results from its pivotal Phase 3 clinical trials, SynAIRgy and LunAIRo, which demonstrated the efficacy and safety of AD109. These results are expected to support a forthcoming New Drug Application (NDA) submission to the FDA later this quarter.
If approved, AD109 could represent a major advancement in the treatment landscape for obstructive sleep apnea, offering patients a simpler, oral alternative to existing therapies.