ARS Pharmaceuticals announced it has entered into a senior secured term loan facility of up to $250 million with affiliates of RA Capital Management and OMERS Life Sciences to accelerate the commercialization of neffy, its needle-free epinephrine nasal spray for treating anaphylaxis. The company has borrowed an initial $100 million from the facility, which will primarily fund commercial growth initiatives and marketing efforts to expand neffy's market presence.
Commercial Expansion Strategy
The funding will support marketing and medical affairs initiatives designed to generate and disseminate real-world evidence about neffy's effectiveness. According to the company, this growing body of data demonstrates that neffy's real-world effectiveness is consistent with traditional epinephrine injection therapies, reinforcing the value of its innovative needle-free delivery method among patients, caregivers, and healthcare professionals.
In the United States, neffy has shown accelerating commercial traction, with the prescriber base expanding across allergy, primary care, and pediatrics specialties. The company reports nearly doubling the breadth of prescribing over the last four months. Early direct-to-consumer campaigns have delivered meaningful increases in awareness and engagement, providing visibility into potentially attractive returns on investment as marketing spend scales.
Consumer acceptance data supports the commercial strategy. A survey conducted in August 2025 revealed that more than 93% of patients were at least "very likely to consider" neffy if recommended by their healthcare provider, with 68% reporting they were "extremely likely to consider" the treatment.
Market Opportunity and Unmet Need
The loan facility positions ARS Pharmaceuticals to target the approximately $2 billion annual U.S. epinephrine market based on trailing twelve-month unit volume at neffy's net pricing. The company plans to expand the current market by improving adherence and refill rates, re-engaging lapsed patients, and activating untreated patients.
Significant treatment gaps exist in the current epinephrine market. Approximately 40 million people in the United States experience Type I allergic reactions, with about 20 million diagnosed and treated for severe reactions that may lead to anaphylaxis over the last three years. However, in 2023, only 3.2 million filled their active epinephrine auto-injector prescription, and of those, only half consistently carry their prescribed device. Even among patients who carry auto-injectors, more than half either delay or do not administer the device when needed in an emergency.
Financing Structure and Terms
The senior secured term loan facility features an interest rate of SOFR plus 5.5% subject to a 3.0% SOFR floor, with potential interest rate reductions of 25-50 basis points based on achieving certain sales milestones. The facility includes interest-only payments until maturity in September 2030.
Beyond the initial $100 million, the facility provides additional financing options: a $25 million delayed draw term loan available at the company's discretion between six and twelve months from closing, another $25 million delayed draw term loan available for eighteen months following closing (subject to achieving trailing twelve-month net U.S. revenue of $100 million), and an uncommitted $100 million incremental term loan subject to lender agreement.
"By choosing a loan facility over other capital vehicles, we can increase commercial investment and strengthen our balance sheet with no dilution, reflecting our confidence in neffy's durable cash flow profile and long-term market opportunity," said Richard Lowenthal, Co-Founder, President, and CEO of ARS Pharma.
Clinical Profile and Safety
Neffy is indicated for emergency treatment of Type I allergic reactions, including anaphylaxis, in adult and pediatric patients aged 4 years and older who weigh 33 pounds or greater. The nasal spray contains epinephrine and is designed for intranasal administration only.
Common side effects include nasal discomfort, headache, throat irritation, chest and nasal congestion, feeling overly excited, nervous or anxious, nose bleed, nose pain, sneezing, runny nose, dry nose or throat, tingling sensation, feeling tired, dizziness, nausea, and vomiting. Patients are advised to always carry two neffy nasal sprays and may need a second dose if symptoms continue or return.
Strategic Partnership Perspective
"We are deeply supportive of ARS Pharma's mission and the transformative impact of neffy for people who need rapid, reliable, needle-free epinephrine," said Adam Kaye, Senior Managing Director and Partner, Structured Capital, at RA Capital. "Based on its unique product profile and accelerating commercial traction, we see significant potential for neffy."
Peter Kolchinsky, Founder and Managing Partner at RA Capital and ARS Pharma Board member, emphasized the personal significance of the innovation: "Having seen my child hesitate to tell me she's having a reaction because she fears the needle in an auto-injector, I consider neffy one of the most transformative innovations of my career. Before neffy, there was no needle-free choice."
Based on current operating plans, ARS Pharmaceuticals expects the pro forma cash resources from the committed capital to fund operations through expected cash-flow breakeven.
