Disc Medicine has secured a $200 million non-dilutive term loan facility from Hercules Capital to propel the clinical development of its portfolio of assets targeting serious hematologic diseases. This substantial financing aims to provide the company with enhanced financial and operational flexibility as it advances several key clinical programs.
Advancing Clinical Programs with New Funding
The funding is earmarked to support a range of clinical activities, most notably the initiation of a confirmatory study of bitopertin for erythropoietic protoporphyria (EPP). Additionally, the financing will facilitate Phase II studies for DISC-0974 and DISC-3405 in anemia of myelofibrosis (MF) and polycythemia vera (PV), respectively. Disc Medicine also intends to commence a multiple-dose trial evaluating its therapies in anemia of non-dialysis dependent chronic kidney disease (NDD-CKD).
The loan facility is structured into four tranches. A $30 million tranche was drawn at closing, with additional funds available through the second half of 2026 at Disc’s discretion. An additional $80 million is accessible at Disc’s discretion, while another $65 million is contingent upon achieving specific performance milestones. The final tranche of $25 million will be available during the interest-only period, subject to Hercules Capital's consent.
Strategic Implications and Future Catalysts
Disc Medicine's chief financial officer, Jean Franchi, emphasized the strategic importance of this financing, stating, "With this non-dilutive $200m financing, we are well-positioned as we prepare for upcoming catalysts across our entire pipeline including the potential initiation of a confirmatory trial of bitopertin in EPP by mid-2025 and related commercial preparations."
Franchi further noted that the financing strengthens the company's already robust financial standing, providing optionality and strategic flexibility in future capital formation. This positions Disc Medicine to continue advancing its pipeline and delivering innovative treatments to patients suffering from serious hematologic diseases.
Regulatory Progress for Bitopertin
Disc Medicine recently announced an agreement with the U.S. Food and Drug Administration (FDA) regarding the regulatory path for bitopertin in treating erythropoietic protoporphyria (EPP), a rare skin condition. This agreement sets the stage for potential NDA submission and commercialization, further underscoring the significance of the new funding in supporting these critical milestones.
