BOSTON, July 26. 10, 2022 (GLOBE NEWSWIRE) — Inozyme Pharma, Inc. (Nasdaq:INZY), a rare disease biopharmaceutical company developing novel therapies for the treatment of abnormal mineralization, today announced that it has incurred debt facility of financing of up to $70 million with K2 HealthVentures (K2HV), a specialty finance company focused on healthcare.
“In 2022, Inozyme delivered the first clinical validation of INZ-701 in ENPP1 and ABCC6 deficiencies based on our previously announced positive preliminary data, and successfully raised capital through an underwritten offering backed by blue chip investors. order in the health sector. Together with our funding, this credit facility further strengthens our balance sheet and provides strategic and operational flexibility,” said Sanjay Subramanian, MS, MBA, Chief Financial Officer of Inozyme. “We look forward to the milestone-rich quarters ahead, when we expect to announce early data from our ongoing Phase 1/2 clinical trials in both indications. We are also looking to move into registration trials as soon as possible. Our partnership with K2HV reduces our reliance on capital markets, allowing us to focus on our mission of helping patients with abnormal mineralization diseases.
Under the terms of the agreement, Inozyme withdrew $5 million from K2HV upon execution of the loan agreement and has the option to draw an additional $20 million from the first tranche through March 31, 2023. Thereafter, an additional $20 million will be available. in two tranches upon achievement of certain milestones during specified availability periods, and the final $25 million is subject to lender approval. The Company has no obligation to raise funds in the future.
Inozyme expects its cash, cash equivalents and short-term investments as of March 31, 2022, together with the net proceeds of $68.3 million from its April 2022 offering and the $25 million available under of the first tranche of the loan agreement, will allow the Company to finance its operations until the second quarter of 2024.
“We are delighted to partner with Inozyme on this funding, which will support the company as it advances its lead asset across multiple indications and studies,” said Nimesh Shah, Chief Executive Officer of K2HV. “Inozyme’s deep understanding of the biology behind mineralization and its development of new therapies to address the underlying causes of abnormal mineralization diseases, positions them to transform the lives of people suffering from these rare diseases.
About Inozyme Pharma
Inozyme Pharma, Inc. (Nasdaq:INZY) is a rare disease biopharmaceutical company developing novel therapies for the treatment of abnormal mineralization diseases affecting the vascular system, soft tissues and the skeleton. With our in-depth understanding of the biological pathways involved in mineralization, we pursue the development of therapeutics to address the underlying causes of these debilitating diseases. It is well established that two genes, ENPP1 and ABCC6, play a key role in a critical mineralization pathway and that defects in these genes lead to abnormal mineralization. We are initially focused on the development of a new therapy, INZ-701, to treat the rare genetic diseases of ENPP1 and ABCC6 deficiencies. INZ-701 is currently in Phase 1/2 clinical trials for the treatment of ENPP1 deficiency and ABCC6 deficiency.
Inozyme Pharma was founded in 2017 by Joseph Schlessinger, Ph.D., Demetrios Braddock, MD, Ph.D., and Axel Bolte, MSc, MBA, with technology developed by Dr. Braddock and licensed from the University of Yale. For more information, please visit www.inozyme.com.
About K2 Health Ventures
K2 HealthVentures is an alternative investment company focused on providing flexible, long-term financing solutions to innovative private and public companies in the life sciences and healthcare sectors. The investment team is made up of collaborative and experienced professionals with a diverse background in finance and operations, as well as deep domain knowledge in various healthcare sectors. A unique and flexible permanent capital structure enables the company to provide creative and adaptive financing solutions and to meet the ever-changing capital needs of its portfolio companies as they grow. K2HV is driven by the dual goals of profit and purpose – aiming to fuel the growth of innovative businesses that will ultimately improve the lives of patients and return a percentage of investment profits to underserved areas in healthcare. www.k2hv.com
Caution Regarding Forward-Looking Statements
The statements in this press release regarding future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. statements include, but are not limited to, statements relating to the timing of our clinical trials and other studies, the availability of data from clinical trials and other studies, the impact of the credit facility on the balance sheet of the Company and the sufficiency of the Company’s cash resources. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “potential”, ” predict”, “project”, “should”, “target”, “shall”, “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. All forward-looking statements are based on management’s current expectations regarding future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those stated or implied. by these forward-looking statements. These risks and uncertainties include, but are not limited to, risks associated with the Company’s ability to conduct its ongoing Phase 1/2 clinical trials of INZ-701 for ENPP1 deficiency and ABCC6 deficiency; obtain and maintain necessary approvals from the FDA and other regulatory authorities; continue to advance its product candidates through preclinical studies and clinical trials; replicate in subsequent clinical trials the positive results found in preclinical studies and early-stage clinical trials of its product candidates; advance the development of its product candidates on schedule in planned and future clinical trials; obtain, maintain and protect intellectual property rights related to its product candidates; manage expenses; and raise the substantial additional capital needed to achieve its business objectives. For a discussion of other risks and uncertainties, and other important factors, each of which could cause the Company’s actual results to differ materially from those contained in the forward-looking statements, see the “Risk Factors” section in the Company’s recent annual report on Form 10-K filed with the Securities and Exchange Commission, together with discussions of potential risks, uncertainties and other important factors, in the Company’s latest filings with the Securities and Exchange Commission. Further, the forward-looking statements included in this press release represent the views of the Company as of the date hereof and should not be relied upon as representing the views of the Company as of any date subsequent to the date hereof. The Company expects subsequent events and developments to cause its views to evolve. However, while the Company may choose to update these forward-looking statements at some time in the future, the Company expressly disclaims any obligation to do so.
Stefan Riley, Director of Investor Relations