enGene Secures $125M Debt Facility to Advance Gene Therapy Pipeline
Financing from Hercules Capital provides non-dilutive capital to extend the clinical-stage biotech's operational runway as it develops its novel genetic medicines.
Clinical-stage biotechnology firm enGene Holdings Inc. has secured an expanded debt facility of up to $125 million from Hercules Capital, Inc., providing a significant financial boost to the company's development of innovative genetic medicines.
The announcement, made via a press release on Business Wire, represents a substantial vote of confidence in the company's platform. For enGene, which currently has no revenue and a market capitalization of approximately $624 million, the non-dilutive nature of the debt is a key advantage, as it provides capital without impacting shareholder equity.
Based in Montreal, Canada, enGene is focused on developing genetic medicines that target mucosal tissues. The company's proprietary therapeutic platform aims to improve the safety and efficacy of genetic therapies to address unmet medical needs. This new credit line is expected to extend enGene's operational runway and support the advancement of its clinical-stage pipeline.
While this financing provides a crucial capital infusion, enGene remains a pre-revenue company in a high-risk, high-reward sector. The company's success will ultimately depend on the outcomes of its clinical trials and the eventual commercial viability of its therapeutic candidates.
Shares of enGene (ENGN) were trading at $9.10 in recent market activity. The stock has seen a 52-week high of $11.14 and a low of $2.76, reflecting the volatile nature of clinical-stage biotech investments.