NMTR - 9 Meters gets $70M debt facility for phase 3 development of short bowel syndrome drug

9 Meters Biopharma ( NASDAQ: NMTR ) on Thursday said it had entered into a debt financing agreement for up to $70M to support the phase 3 development of its agonist vurolenatide for the treatment of short bowel syndrome.

Short bowel syndrome is a disorder where the body is unable to absorb enough nutrients from food due to a shortage in the small intestine. Its main symptom is diarrhea.

NMTR said the financing will be in the form of a senior secured convertible notes facility with a single lender.

The financing will support phase 3 development all the way up to regulatory submission.

As per the deal, NMTR will draw an initial $20M from the financing, and will be able to access up to an additional $50M in tranches of $5M-$20M per quarter over an 18-month period.

The company said that after the initial $20M drawdown, it expects it cash and cash equivalents to total $57M as of March 31.

NMTR earlier separately announced that vurolenatide met the main goal of reducing 24-hour total stool output in short bowel syndrome patients in a phase 2 trial.

NMTR stock -6.7% to $0.31 in premarket trading.

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