, Columnist
Relypsa Breaks a Biotech Commandment
Its expensive loan is a sign of tough financing conditions.
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Companies borrow money all the time. But when a biotech with only one recently approved drug does a debt financing, it's breaking an unwritten industry commandment.
Relypsa, a biotech based in Redwood, California, announced Tuesday evening it is raising $150 million in senior secured loans paying an 11.5 percent interest rate and maturing in April 2022. Equity financing is the norm in biotech for companies without a longer history of drug sales.