UroGen Announces Refinanced Term Loan Agreement with Pharmakon Advisors
MWN-AI** Summary
UroGen Pharma Ltd. (Nasdaq: URGN), a biotech firm focused on innovations for urothelial and specialty cancers, has announced a significant refinancing agreement with Pharmakon Advisors, LP. On February 26, 2026, UroGen amended its loan terms to secure a senior secured term loan of up to $250 million, which will be disbursed in two tranches. The initial tranche of $200 million was immediately funded to refinance an existing $125 million debt and provide additional non-dilutive capital, thereby strengthening the company's financial position.
This new loan carries a fixed interest rate of 8.25% and extends the amortization period until the first quarter of 2030, allowing UroGen to repay the loan in four equal quarterly installments beginning in 2030. Notably, the agreement imposes no financial covenants, granting UroGen enhanced flexibility in managing its balance sheet. A second tranche of $50 million remains available at the company's discretion until June 30, 2027, subject to standard closing conditions.
Chris Degnan, UroGen’s CFO, highlighted that this refinancing lowers their cost of capital and bolsters their ability to support the management of approved products and advance their pipeline. Martin Friedman of Pharmakon expressed confidence in UroGen's strategic growth as it continues addressing unmet needs in the urothelial cancer space.
The transaction is part of UroGen's efforts to solidify its financial foundation and invest in its proprietary technologies, including RTGel®, aimed at improving drug therapies for patients. This partnership with Pharmakon, which has a notable history of investing in life sciences, is geared towards positioning UroGen favorably for its next phase of growth.
MWN-AI** Analysis
UroGen Pharma Ltd. (Nasdaq: URGN) has made a prudent financial decision by securing a refinancing agreement with Pharmakon Advisors. This arrangement reduces the company’s overall cost of capital and extends its debt obligations into Q1 2030, which should provide a significant strategic advantage as it continues to develop treatments for urothelial and specialty cancers.
With the refinancing effort, UroGen lowers its interest expense to 8.25%, locking in a fixed rate that can shield the company from potential interest rate fluctuations. The immediate infusion of $200 million enables UroGen to not only address its existing debt of $125 million but also to bolster its financial flexibility with $50 million more accessible by mid-2027, greatly reducing dependency on equity financing which could dilute shareholder value.
The absence of financial covenants associated with the new loan agreement adds another layer of strategic maneuverability, allowing UroGen to allocate resources toward R&D and commercialization of its proprietary RTGel technology, designed to improve therapeutic outcomes in urothelial diseases.
Investors should regard this refinancing as a positive signal, reflecting UroGen's commitment to solidifying its financial footing while fostering growth opportunities. The focus on life-cycle management of existing products and advancing its pipeline may yield long-term returns and improve market sentiment around the stock.
However, potential investors should remain cognizant of the inherent risks in biotech investments, particularly concerning regulatory approvals and market acceptance of UroGen’s therapies. Given these considerations, while the recent refinancing positions UroGen favorably, investors should weigh both growth prospects and associated risks diligently. As such, a cautious yet optimistic approach to UroGen shares could be warranted.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Opportunistic refinancing meaningfully reduces cost of capital with 8.25% fixed interest rate and extends amortization period to Q1 2030
$200 million funded at closing to refinance the existing $125 million debt facility and provide additional non-dilutive capital
Additional $50 million tranche available at Company’s discretion until June 30, 2027
PRINCETON, N.J., March 02, 2026 (GLOBE NEWSWIRE) -- UroGen Pharma Ltd. (Nasdaq: URGN), a biotech company dedicated to developing and commercializing novel solutions that treat urothelial and specialty cancers, announced it has entered into an agreement with funds managed by Pharmakon Advisors, LP (Pharmakon) to revise the terms of its loan agreement entered into in March 2024.
On February 26, 2026, the Company entered into an amended and restated loan agreement with funds managed by Pharmakon for a senior secured term loan of up to $250 million in two tranches. The first tranche of $200 million was funded at closing to refinance the existing $125 million loan facility and provide additional non-dilutive capital. The second tranche of $50 million may be drawn at the Company’s discretion no later than June 30, 2027, subject to customary closing conditions. All outstanding loans with funds managed by Pharmakon will accrue interest at a fixed rate of 8.25% and be repaid in four equal quarterly payments commencing in the first quarter of 2030. There are no financial covenants associated with the amended loan.
“We are pleased to announce our expanded partnership with Pharmakon,” said Chris Degnan, Chief Financial Officer of UroGen. “This refinancing strengthens UroGen’s financial position by lowering our overall cost of capital, extending our maturity profile, and enhancing balance sheet flexibility. Importantly, it provides meaningful capital to support life-cycle management of our approved products and advancement of our pipeline. With a fixed interest rate and favorable long-dated maturity, this structure better positions UroGen to execute its long-term growth strategy and create value for both patients and shareholders.”
“Pharmakon is proud to continue supporting UroGen’s mission to address meaningful unmet needs in urothelial cancers,” said Martin Friedman, Principal at Pharmakon. “We have strong confidence in the company’s portfolio and commercial foundation, and this updated debt facility reflects our longstanding partnership and conviction in UroGen’s strategy as it enters its next phase of growth.”
TD Cowen acted as the exclusive financial advisor to UroGen on the transaction. Cooley LLP acted as legal advisor to UroGen. Akin Gump acted as legal advisor to Pharmakon.
About UroGen Pharma Ltd.
UroGen is a biotech company dedicated to developing and commercializing innovative solutions that treat urothelial and specialty cancers because patients deserve better options. UroGen has developed RTGel® reverse-thermal hydrogel, a proprietary sustained-release, hydrogel-based platform technology that has the potential to improve the therapeutic profiles of existing drugs. UroGen’s sustained release technology is designed to enable longer exposure of the urinary tract tissue to medications, making local therapy a potentially more effective treatment option. Our first product to treat LG-UTUC and second product (mitomycin) for intravesical solution for patients with recurrent LG-IR-NMIBC are designed to ablate tumors by non-surgical means. UroGen is headquartered in Princeton, NJ with operations in Israel. Visit www.urogen.com to learn more or follow us on X, @UroGenPharma
About Pharmakon Advisors
Pharmakon Advisors, LP is a leading investor in non-dilutive debt for the life sciences industry and is the investment manager of the BioPharma Credit funds. Established in 2009, funds managed by Pharmakon Advisors, LP have committed up to $11 billion across 68 investments.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding: the expected benefits of the amended and restated term loan agreement with Pharmakon, including its potential to strengthen UroGen’s financial position by lowering overall cost of capital, extending the maturity profile, enhancing balance sheet flexibility, and better positioning UroGen to execute on its long-term growth strategy; the potential of UroGen’s proprietary RTGel technology to improve therapeutic profiles of existing drugs, other than mitomycin; and UroGen’s sustained release technology making local delivery potentially more effective as compared to other treatment options. Words such as “anticipate,” “expect,” “may,” “potential,” “up to,” “will” or other words that convey uncertainty of future events or outcomes are used to identify these forward-looking statements. These statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to: clinical results may not be indicative of results that may be observed in the future, including in larger populations; potential safety and other complications related to UroGen’s products; risks related to our and our licensors’ ability to protect our respective patents and other intellectual property; the ability to maintain regulatory approval; complications associated with commercialization activities; labeling limitations; competition in UroGen’s industry; the scope, progress and expansion of developing and commercializing UroGen’s products and product candidates; the size and growth of the market(s) therefor and the rate and degree of market acceptance thereof vis-à-vis alternative therapies or procedures, such as surgery; UroGen’s ability to attract or retain key management, members of the board of directors and other personnel; UroGen’s RTGel technology and ZUSDURI may not perform as expected; new data relating to ZUSDURI, including from spontaneous adverse event reports and from the ongoing ENVISION trial, may result in changes to the product label and may adversely affect sales, or result in withdrawal of ZUSDURI from the market; the potential for payors to delay, limit or deny coverage for ZUSDURI; UroGen may not successfully develop and receive regulatory approval of any other product that incorporates RTGel technology; and the impacts of general macroeconomic and geopolitical conditions on UroGen’s business and financial position. In light of these risks and uncertainties, and other risks and uncertainties that are described in the Risk Factors section of UroGen’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, filed with the SEC on November 6, 2025, as updated by the Risk Factors section of UroGen’s Annual Report on Form 10-K for the year ended December 31, 2025, being filed with the SEC today, the events and circumstances discussed in such forward-looking statements may not occur, and UroGen’s actual results could differ materially and adversely from those anticipated or implied thereby. Any forward-looking statements speak only as of the date of this press release and are based on information available to UroGen as of the date of this release.
INVESTOR CONTACT:
Vincent Perrone
Senior Director, Investor Relations
vincent.perrone@urogen.com
609-460-3588 ext. 1093
MEDIA CONTACT:
Cindy Romano
Director, Corporate Communications
cindy.romano@urogen.com
609-460-3566 ext. 1083
FAQ**
How does UroGen Pharma Ltd. (URGN) plan to utilize the additional non-dilutive capital provided by the $200 million tranche to enhance its product pipeline and support life-cycle management?
What specific strategic advantages does UroGen Pharma Ltd. (URGN) anticipate from extending the amortization period until Q1 2030 with the new fixed interest rate of 8.25%?
In what ways might the absence of financial covenants in the amended loan agreement impact UroGen Pharma Ltd. (URGN) as it executes its long-term growth strategy?
How does UroGen Pharma Ltd. (URGN) ensure that the benefits of refinancing with Pharmakon Advisors align with its goal of addressing unmet needs in urothelial cancers and sustaining investor confidence?
**MWN-AI FAQ is based on asking OpenAI questions about UroGen Pharma Ltd. (NASDAQ: URGN).
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