Altimmune, Inc. (Nasdaq: ALT) has secured a credit facility of up to $100 million from Hercules Capital, Inc. (NYSE: HTGC) to advance the development of its lead candidate pemvidutide, a novel GLP-1/glucagon dual receptor agonist targeting liver and cardiometabolic diseases.
The agreement includes an initial $15 million tranche funded at closing, with additional tranches becoming available as the company achieves specific clinical and financial milestones. This financing significantly strengthens Altimmune's balance sheet, which already included $150 million in cash and cash equivalents as of March 31, 2025.
"We are excited to partner with Hercules, which has a strong history of funding innovative biopharmaceutical companies," said Vipin K. Garg, Ph.D., President and Chief Executive Officer of Altimmune. "With our existing cash on hand, we expect this credit facility to significantly extend our cash runway at flexible, attractive terms."
Pemvidutide Development Pipeline
The primary focus of this financing is to support the ongoing development of pemvidutide across multiple indications. The drug is currently being evaluated in the IMPACT trial, a Phase 2b study in metabolic dysfunction-associated steatohepatitis (MASH), with top-line data expected in Q2 2025.
MASH, formerly known as non-alcoholic steatohepatitis (NASH), represents a significant unmet medical need affecting an estimated 16 million adults in the United States. The condition can progress to cirrhosis, liver failure, and hepatocellular carcinoma if left untreated.
Altimmune is also expanding pemvidutide's development into alcohol-related conditions, with Phase 2 trials in Alcohol Use Disorder (AUD) and Alcohol Liver Disease (ALD) expected to begin in the second and third quarters of 2025, respectively. These conditions represent substantial market opportunities, with AUD affecting approximately 29.5 million Americans and ALD being a leading cause of liver-related mortality.
Financing Structure
The credit facility is structured to align with Altimmune's development timeline and capital needs:
- $15 million drawn at closing
- Additional $25 million available in 2025, subject to certain clinical and financial milestones
- Remaining $60 million available beginning in 2026, with $15 million tied to achievement of specific milestones and up to $45 million subject to Hercules' approval
The loan features an interest-only period for the first 24 months, which can be extended up to 42 months upon achievement of milestones. The loan matures 48 months from closing, and notably, no warrants are included in the agreement.
"Hercules is thrilled to support Altimmune as it develops pemvidutide as a potential therapy for the treatment of MASH, AUD and ALD," said Adam Soller, Managing Director at Hercules Capital. "We look forward to the upcoming data release from the IMPACT trial and serving as a long-term capital partner to Altimmune through its next chapter of clinical development."
Mechanism of Action and Market Potential
Pemvidutide's dual agonist mechanism targets both GLP-1 and glucagon receptors, potentially offering advantages over single-target GLP-1 therapies. This dual approach may provide enhanced metabolic benefits and liver-specific effects that could be particularly beneficial for MASH and alcohol-related liver conditions.
The GLP-1 receptor agonist market has seen explosive growth in recent years, primarily driven by obesity and diabetes indications. Altimmune's strategy to develop pemvidutide for liver-specific conditions could potentially differentiate it in this increasingly competitive landscape.
Looking Forward
With this financing in place, Altimmune is positioned to reach several critical milestones over the next 12-18 months. The upcoming IMPACT trial results will be particularly significant, potentially validating pemvidutide's efficacy in MASH and informing the company's development strategy for other indications.
The expansion into alcohol-related disorders represents a strategic diversification of pemvidutide's potential applications, addressing conditions with significant prevalence and limited treatment options. If successful, this approach could substantially increase the drug's market potential and therapeutic impact.
As Altimmune advances its clinical programs, this credit facility provides important financial flexibility, allowing the company to pursue its development goals while minimizing immediate dilution to existing shareholders.
