Viridian Therapeutics announced a significant royalty financing agreement with DRI Healthcare Acquisitions LP worth up to $300 million, positioning the biotechnology company to advance its thyroid eye disease (TED) therapeutic pipeline toward commercialization. The deal includes $55 million upfront and potential near-term milestones up to $115 million tied to positive clinical trial results and regulatory approvals.
Accelerated Development Timeline
The company has accelerated key regulatory and clinical milestones for its TED portfolio. Viridian expects to submit the Biologics License Application (BLA) for veligrotug to the FDA imminently, marking a crucial step toward potential market approval. The company has also updated guidance for its VRDN-003 phase 3 pivotal clinical trials, with topline data from REVEAL-1 in active TED patients now expected in Q1 2026 and REVEAL-2 in chronic TED patients anticipated in Q2 2026.
"We are excited to partner with DRI after a highly competitive royalty process. As we accelerate towards our anticipated commercial launches in TED, this significant non-dilutive capital puts us in an even stronger position," said Steve Mahoney, Viridian's President and Chief Executive Officer.
Financial Structure and Terms
Under the royalty agreement, Viridian will pay DRI tiered royalties based on annual U.S. net sales performance. The structure includes 7.5% royalties on sales up to $600 million, 0.8% on sales between $600 million and $900 million, 0.25% on sales between $900 million and $2 billion, with no royalties owed on annual sales exceeding $2 billion.
The company also amended its credit facility with Hercules Capital, providing access to up to $300 million in additional capital at Viridian's discretion upon achieving certain milestones. This amended agreement extends the company's interest-free payment period and includes a required $50 million drawdown at closing, providing immediate capital of $30 million after settling the prior facility.
Therapeutic Pipeline Progress
Viridian's lead candidate veligrotug has demonstrated positive results in two global phase 3 clinical trials, THRIVE and THRIVE-2, meeting all primary and secondary endpoints in both active and chronic TED patients. The company is also advancing VRDN-003 as a potential best-in-class subcutaneous therapy, designed as a half-life-extended, low-volume, self-administered treatment option for TED patients.
Beyond its TED portfolio, Viridian is developing a novel portfolio of neonatal Fc receptor (FcRn) inhibitors, including VRDN-006 and VRDN-008, with potential applications in multiple autoimmune diseases.
Commercial Readiness
The combined financing from the DRI royalty agreement and existing cash resources is expected to fully fund the anticipated commercial launches of both veligrotug and VRDN-003. Goldman Sachs & Co. LLC served as exclusive financial advisor to Viridian throughout the royalty financing process.
Viridian's focus on antibody discovery and protein engineering has enabled the development of differentiated therapeutic candidates targeting previously validated drug targets in established disease areas, positioning the company for potential commercial success in the rare disease space.
