Ocugen, Inc. (NASDAQ: OCGN) announced it has secured a $30 million credit facility with Avenue Venture Opportunities Fund, a fund of Avenue Capital Group, to bolster its clinical development programs. The financing, finalized on November 6, 2024, is intended for general corporate purposes, capital expenditures, working capital, and general and administrative expenses.
The credit facility has a term of four years and was fully funded on the closing date. According to Ocugen's Chairman, Chief Executive Officer, and Co-founder, Dr. Shankar Musunuri, this financing provides shareholder-friendly capital that will support the clinical advancement of their first-in-class modifier gene therapies. A key focus will be nearing completion of the OCU400 Phase 3 liMeliGhT clinical trial and preparing for Biologics License Application (BLA) and Marketing Authorization Application (MAA) submissions.
Strategic Funding for Growth
This financing is part of Ocugen’s diversified strategy to fund its business and allocate resources across its portfolio. Chad Norman, Senior Portfolio Manager at Avenue Capital, expressed confidence in Ocugen's growth trajectory, highlighting the company's novel scientific platforms and dedication to fighting blindness diseases.
Extended Cash Runway
With the net proceeds from this facility combined with existing cash, cash equivalents, and restricted cash, Ocugen anticipates its cash runway will extend into the first quarter of 2026. This provides a stable financial foundation for the company as it continues to develop its gene and cell therapies, biologics, and vaccines.
Advisors
Chardan and Titan Partners Group, a division of American Capital Partners, acted as financial advisors to Ocugen on the transaction.
