Orchard Therapeutics announces second closing of strategic financing

Orchard Therapeutics has completed the second closing of its previously announced securities purchase agreement, resulting in $34M of new capital before placement agent and transaction fees. In March 2023, the company completed the first closing of an innovative financing arrangement, led by RA Capital Management with participation from other leading healthcare investors that resulted in $34M of new capital before placement agent and transaction fees. Per the terms of the agreement, the company could bring in an aggregate of up to $188M at increasing valuations following the achievement of certain U.S. regulatory milestones for OTL-200 for MLD. The conditions of the second closing included shareholder approval and the company’s intention to initiate a biologics license application submission following receipt of minutes from a productive pre-BLA meeting with the U.S. Food and Drug Administration for OTL-200, both of which have been achieved. The second closing comprises the sale of units at a purchase price of $8.00 per unit for aggregate proceeds of $34M including the issuance of 4.25M American Depository Shares as well as warrants. Guggenheim Securities, LLC acted as the sole placement agent for the private placement. Orchard intends to use the net proceeds from the offering to support its growing commercial capabilities for Libmeldy, prepare for a potential U.S. approval for OTL-200 and advance its HSC gene therapy portfolio. The company expects that its existing cash, cash equivalents and investments, inclusive of the proceeds from the second closing, will fund its anticipated operating, debt service and capital expenditure requirements into mid-2025, with the potential for additional runway extension pending the exercise of the warrants issued as part of the financing.