MALVERN, PA — Ocugen, Inc. (Nasdaq: OCGN) recently closed a $130 million private offering of convertible senior notes, using part of the proceeds to retire existing debt while extending its projected cash runway into 2028 as the biotechnology company advances multiple late-stage gene therapy programs.
The 6.75% convertible senior notes due 2034 were sold to qualified institutional buyers under Rule 144A of the Securities Act, including the full exercise of an option for an additional $15 million in notes, according to the company.
Ocugen expects the transaction to generate approximately $112.6 million in net proceeds after discounts and offering-related expenses.
The offering was priced at 90% of the notes’ principal amount.
The company allocated approximately $32.7 million from the proceeds to fully repay outstanding obligations under its loan agreement with affiliates of Avenue Capital Group, including accrued interest, prepayment penalties and related fees.
Remaining proceeds are expected to support general corporate operations and development activities.
“With our anticipated cash runway extended into 2028, we are well-positioned to advance three late-stage programs and execute toward our goal of filing three BLAs by 2028,” Chairman and Chief Executive Officer Dr. Shankar Musunuri stated.
Ocugen is developing gene therapies targeting blindness-related diseases and has been advancing several late-stage clinical programs aimed at securing future biologics license application submissions.
The financing comes as biotechnology companies continue to seek alternative funding sources amid tighter capital markets and elevated development costs across the sector.
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