·    Loan agreement to provide EUR 9 million upon closing

·    Strengthens balance sheet ahead of anticipated filing of arimoclomol for Niemann Pick Type-C (NPC)


Copenhagen, Denmark, August 27, 2019 – Orphazyme A/S (ticker: ORPHA.CO), a biopharmaceutical company dedicated to developing treatments for patients living with rare diseases, today announces that it has entered into a structured debt facility (Loan Agreement) with Kreos Capital VI (UK) Limited (Kreos) to secure funding of EUR 9 million. Orphazyme plans to draw down the loan on September 1, 2019. Proceeds from the loan will be used to fund the on-going preparations for filing of arimoclomol in the US and Europe, commercial planning, and for general corporate purposes. 


Anders Fink Vadsholt, CFO of Orphazyme said, “Engaging in this loan facility diversifies our financing strategy and allows us, with only limited dilution, to bolster our cash position as we move closer to significant value inflection points, including the anticipated filing of arimoclomol for NPC in the US and Europe during H1 2020.”   


Aris Constantinides, General Partner at Kreos, commented, “This is an important time for Orphazyme as the company prepares to file its lead program with regulatory authorities in the US and Europe. We are very pleased to support Orphazyme in its mission to bring innovative new medicines to patients with rare diseases.”  


About the financing



42 months

Repayment schedule

The first twelve (12) months are interest only with the remaining thirty (30) months requiring equal instalments comprising principal and interest

Interest rate

Annual fixed interest rate of 9.75%

Representations, warranties and general undertakings

Usual representation and warranties are included in the loan agreement. The group is subject to general undertakings such as restrictions on financial indebtedness, security and disposals outside its ordinary course of business. No financial covenants are included


First priority security over certain assets, including intellectual property


The company shall pay various customary fees to Kreos for the establishment of the loan upon execution of the loan agreement, and in connection with drawn down and a facilitation fee payable at Kreos’ discretion prior to the earlier of 8 years or delisting.