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Zosano Pharma Enters Into Capital Equipment Lease Agreement With Trinity Capital Investment
Zosano obtains lease financing for the purchase of capital equipment for the scale up and planned commercialization of M207
FREMONT, Calif., Sept. 26, 2018 (GLOBE NEWSWIRE) -- Zosano Pharma Corporation (NASDAQ:ZSAN) (“Zosano” or the “Company”), a clinical-stage biopharmaceutical company developing and commercializing therapies that deliver rapid systemic absorption by leveraging its novel and proprietary technology, Adhesive Dermally-Applied Microneedle System (“ADAM™”), announced today that it has entered into a new capital equipment leasing line of up to $14.0 million from Trinity Capital Investment (“Trinity”), a leading venture debt provider. This will provide financing for the purchase and installation of an automated coating process at Zosano’s contract manufacturer. This process will be capable of producing as many as 1.5 million doses per year, which is the Company’s target at launch.
As part of this transaction, Zosano paid off in full its outstanding balance of $2.0 million under the Loan and Security Agreement it entered into with Hercules Capital, Inc. on June 3, 2014.
“This new financing partnership with Trinity provides support for commercial manufacture of M207 and is part of our planned technology transfer and scale up activities now underway,” said John Walker, chief executive officer and chairman of the board at Zosano.
M207 is Zosano’s proprietary formulation of zolmitriptan delivered utilizing its proprietary ADAM technology. Zosano's ADAM technology consists of titanium microprojections (microneedles) coated with drug, and in the case of M207, its formulation of zolmitriptan. The drug-coated microneedles penetrate into the epidermis and dermis, where the drug is dissolved and enters into the bloodstream. In February 2017, the Company announced statistically significant results from the ZOTRIP pivotal study, which demonstrated that the 3.8mg dose of M207 met both co-primary endpoints, achieving pain freedom and most bothersome symptom freedom at 2 hours. In November 2017, the Company announced the initiation of its long-term safety study evaluating M207 and expects to file a New Drug Application for M207 in the fourth quarter of 2019.
About Trinity Capital Investment
High-growth venture capital-backed companies turn to Trinity Capital Investment as a preferred option for venture loans and equipment leases to fuel their growth and extend their runway. Since 2008, Trinity has worked closely with leading venture capital firms and their respective portfolio companies to offer valuable support, enhanced flexibility and competitive venture debt financing solutions to customers with distinctive needs. Having funded some of the world’s most innovative startup companies, Trinity is the partner of choice for venture-backed technology startups wanting an experienced partner to help strengthen their financial position while preserving equity. For more information, please visit www.trincapinvestment.com or www.youtube.com/c/trinitycapitalinvestment.
This press release contains forward-looking statements regarding the use of funds from the capital equipment leasing line, the expected timing of a New Drug Application for M207 and other future events and expectations. Readers are urged to consider statements that include the words "may," "will," "would," "could," "should," "might," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," "unaudited," "approximately" or the negative of those words or other comparable words to be uncertain and forward-looking. These statements are subject to risks and uncertainties that are difficult to predict and actual outcomes may differ materially. These include risks and uncertainties, without limitation, associated with the process of discovering, developing and commercializing products that are safe and effective for use as human therapeutics, risks inherent in the effort to build a business around such products and other risks and uncertainties described under the heading "Risk Factors" in the Company's most recent annual report on Form 10-K. Although Zosano believes that the expectations reflected in these forward-looking statements are reasonable, we cannot in any way guarantee that the future results, level of activity, performance or events and circumstances reflected in forward-looking statements will be achieved or occur. All forward-looking statements are based on information currently available to Zosano and Zosano assumes no obligation to update any such forward-looking statements.
Chief Executive Officer and Chairman of the Board
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