Harmony Biosciences LLC has entered into a $200 million debt facility with CR Group L.P. (CRG), a healthcare-focused investment firm, to provide additional working capital to fuel the company’s continued growth.
“This financing illustrates our confidence in the continued growth of the company, and importantly, in the significant potential of Harmony to bring new treatment options to those who live with rare diseases,” says John C. Jacobs, president and CEO of Harmony, in a release. “In addition to our original private equity raises totaling $295 million, the flexibility and strength afforded by this debt facility positions the company extremely well to achieve our future goals and address unmet medical needs, in line with our mission.”
John Vittoria, Harmony CFO, says, “We are incredibly proud to have successfully closed on a historic debt facility supported by a premier healthcare-focused investment firm, CRG, who understands our needs and potential.”
On February 12, 2019, the FDA accepted for filing the New Drug Application for Harmony’s investigational product, pitolisant, and granted Priority Review for this NDA. Pitolisant is a highly selective histamine 3 (H3) receptor antagonist/inverse agonist for the potential treatment of excessive daytime sleepiness (EDS) and/or cataplexy in adult patients with narcolepsy.
“CRG is pleased to provide Harmony with flexible financing options as the company prepares to launch its anticipated treatment for narcolepsy in the U.S. and change the treatment landscape within this rare disease category,” says Luke Duster, partner of CRG. “We look forward to the start of a long-term relationship with Harmony and are pleased to support the company’s financial growth objectives.”
Octagon Capital Group and Katten Muchin Rosenman advised Harmony, and Cooley advised CRG, in connection with this transaction.