Impel Neuropharma Announces $100 Million Royalty and Debt Financing Agreement with Oaktree

Impel NeuroPharma

-The transaction provides immediate, non-dilutive capital to further support the commercialization of Trudhesa™

-$100 million in gross proceeds to fund at closing, extending the company’s estimated cash trail through 2024

SEATTLE, March 17, 2022 (GLOBE NEWSWIRE) — Impel NeuroPharma (NASDAQ: IMPL), a commercial-stage pharmaceutical company developing transformative therapies for people with conditions with high unmet medical needs, with an initial focus on the system Central Nervous, today announced two separate transactions with funds managed by Oaktree Capital Management, LP (“Oaktree”) totaling $100 million in gross funding. The transactions include a $50 million royalty agreement on net sales of the nasal spray, Trudhesa™, and $50 million of senior secured debt. Based on current projections, these funds provide Impel with a projected cash trail through 2024.

“This non-dilutive financing provides Impel with immediate and sufficient capital to support the continued success of Trudhesa’s launch and commercialization efforts.” said Adrian Adams, President and CEO of Impel NeuroPharma. “Furthermore, this transaction meets our objectives of strengthening our balance sheet, while retaining the majority of the benefits of Trudhesa’s sales growth for our shareholders.”

Aman Kumar, Co-Head of Life Sciences Lending Portfolio at Oaktree, added, “We are delighted to form a long-term strategic partnership with Impel in supporting the ongoing commercialization of Trudhesa and the development of additional therapies. using the company’s innovative drug delivery technology. . There is a significant unmet medical need for targeted therapies in the upper nasal cavity and Oaktree believes Trudhesa has a highly differentiated and significant offering for acute migraine patients, further validated by the impressive launch metrics to date.

Under the terms of the royalty agreement, Oaktree will provide Impel with an upfront cash payment of $50 million in exchange for tiered royalty payments on Trudhesa’s annual U.S. net sales, as follows: 7.75% on net sales up to $150.0 million; 4.75% on net sales between $150.0 million and $300.0 million; 0.75% on net sales over $300.0 million; and 10.0% of any payments received by Impel under ex-US licensing or partnership agreements for Trudhesa. The total royalty payable by Impel to Oaktree is capped at 1.75x the amount funded upfront, with the option to buy out the royalty agreement at lower multiples during the first three years from funding. Once the cap is reached, the royalty agreement will end.

Under the terms of the credit facility, Impel will borrow $50 million from Oaktree, all of which will be funded at closing. The credit facility will mature five years after financing and will bear interest at SOFR + 8.75% (with a SOFR floor of 1.00%). Following the realization of $125 million of net sales in the United States over the last twelve months, the interest rate margin will be lowered to 8.00%. Impel will only pay interest for the first 48 months. Concurrent with the closing, Impel will retire its existing debt of $30 million with Oxford/SVB.

Cowen acted as exclusive financial advisor to Impel on this transaction.

About Impel NeuroPharma
Impel NeuroPharma, Inc. is a commercial-stage biopharmaceutical company developing transformative therapies for people with diseases with high unmet medical need, with an initial focus on diseases of the central nervous system. Impel offers and develops treatments that combine its exclusive Precision Olfactory Delivery (POD®) technology with well-established therapeutics. In addition to Trudhesa™ (dihydroergotamine mesylate) nasal spray, which is approved in the United States for the acute treatment of migraine with or without aura in adults, Impel is also developing INP105 for the acute treatment of agitation and aggression in autistic patients, and INP107 for OFF episodes in Parkinson’s disease.

About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with $166 billion in assets under management as of December 31, 2021. The firm emphasizes an opportunistic, value-driven, risk-controlled approach for investments in credit, private equity, real estate assets and listed shares. The company has more than 1,000 employees and offices in 20 cities around the world. For more information, please visit Oaktree’s website at http://www.oaktreecapital.com/.

Caution Regarding Forward-Looking Statements
This press release contains “forward-looking” statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including, but not limited to, the potential clinical benefits of Trudhesa™, the opportunities for Trudhesa’s market within the migraine market, the speed of adoption and growth of Trudhesa’s market, the actual amount of royalties to be paid to Oaktree, Impel’s expectations regarding the satisfaction of the closing conditions of the agreements with Oaktree , Impel’s projected cash flow and timing of clinical results announcements and clinical development activities for Impel’s product candidates. Forward-looking statements can be identified by words such as: “believe”, “may”, “will”, “potentially”, “estimate”, “continue”, “anticipate”, “intend”, “could “, ” would “. ‘, ‘project’, ‘plan’, ‘expect’ or the negative or the plural of these words or similar expressions. These statements are subject to numerous risks and uncertainties that could cause actual results and events to differ materially from those anticipated, including, but not limited to, Impel’s ability to maintain Trudhesa’s regulatory approval. , its ability to execute its commercialization strategy for Trudhesa, its ability to develop, manufacture and commercialize its other product candidates, including plans for future development of its POD devices and plans to address additional indications for which Impel may seek approval regulatory, whether the results of preclinical studies or clinical trials are indicative of the results of future trials, and the effects of COVID-19 on its clinical programs and business operations. Many of these risks are described in greater detail in Impel’s filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date of this press release. Impel undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release.

Impel, POD and the Impel logo are registered trademarks of Impel NeuroPharma, Inc. To learn more about Impel NeuroPharma, please visit our website at https://impelnp.com/.

Contact:

Media Relations:
Melyssa Weible
Health Elixir Public Relations
Telephone: (1) 201-723-5805
E-mail: [email protected]

Carol M. Barragan