RADNOR, PA — Mineralys Therapeutics (NASDAQ: MLYS) has agreed to eliminate future royalty obligations tied to its lead drug candidate lorundrostat while securing access to up to $500 million in new debt financing, a transaction that increases the company’s future economic interest in the hypertension treatment as it advances toward potential commercialization.
The biopharmaceutical company will pay Tanabe Pharma Corporation $200 million upfront and up to $100 million in future commercial milestone payments to terminate all royalty payments owed under the existing lorundrostat license agreement.
The deal removes a long-term claim on future product revenue and positions Mineralys to retain a larger share of any eventual sales generated by lorundrostat, which is being developed for hypertension and related cardiovascular and kidney disorders.
Concurrently, Mineralys entered into a senior secured term loan agreement providing access to up to $500 million from funds managed by Pharmakon Advisors LP. The first $100 million tranche will be funded at closing, with the remaining capital available through additional drawdowns subject to specified conditions.
The financing package comes as Mineralys seeks to strengthen its balance sheet ahead of potential regulatory and commercial milestones tied to lorundrostat, one of the company’s most important pipeline assets.
“The transaction with Tanabe eliminates all future royalty payments under the license agreement and positions Mineralys to capture meaningful incremental value from future potential sales of lorundrostat,” Chief Executive Officer Jon Congleton said in a statement.
As part of the revised arrangement, Mineralys will continue to owe up to $165 million in previously established commercial milestone payments. Combined with the newly negotiated obligations, total potential milestone payments to Tanabe could reach $265 million.
Tanabe also agreed to assign its intellectual property rights related to lorundrostat to Mineralys at a later date, further consolidating the company’s control over the asset.
The five-year loan facility matures in June 2031 and carries an interest rate based on the secured overnight financing rate, or SOFR, with a floor of 3.25% plus an additional 5.5 percentage points.
The debt transaction was announced alongside a separate underwritten public offering of approximately $150 million in common stock, providing Mineralys with multiple sources of capital as it advances development of lorundrostat.
Together, the financing and royalty restructuring significantly alter the economics of Mineralys’ lead program, exchanging near-term capital commitments for greater long-term ownership of potential future revenue streams.
Additional details regarding both the royalty buyout and financing agreement are expected to be disclosed in a forthcoming Form 8-K filing with the U.S. Securities and Exchange Commission.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.