By Connor Hart
MeiraGTx will receive an up to $400 million investment from Oberland Capital Management, helping fund the potential commercialization of its late-stage genetic medicines.
The investment includes up to $375 million in non-dilutive capital for capped royalty payments on certain products and up to $25 million in equity, the companies said Tuesday.
Initially, Oberland Capital will invest $135 million, also split between royalty funding and equity. It will have the option to make additional investments based on positive data readouts and regulatory approvals for MeriaGTx's in-development therapies.
Michael Bloom, a partner at Oberland Capital, said MeiraGTx's three late-stage therapies, all of which could potentially be approved within the next two years, made the company an attractive investment target.
Shares of MeiraGTx climbed 4.4%, to $14.50, in premarket trading.
"Having multiple late-stage products allowed for a creative structure with low royalties on more than one product, which provides substantial non-dilutive capital while preserving business development flexibility in all aspects of the company," MeiraGTx Chief Executive Alexandria Forbes added.
Write to Connor Hart at connor.hart@wsj.com