WOODSIDE, Calif., July 13, 2021 – Runway Growth Capital LLC (“Runway”), a leading provider of growth loans to both venture and non-venture backed companies seeking an alternative to raising equity, today announced the close of a senior secured term loan of $35 million to SetPoint Medical (“SetPoint”), a Valencia, California based, privately-held clinical-stage bioelectronic medicine company developing therapies for chronic autoimmune diseases.
In the past two quarters, Runway has announced five life sciences sector deals totaling $175 million in credit; including Allurion, VERO Biotech, Gynesonics, CrossRoads Extremity Systems, and SetPoint.
Founded in 2007, SetPoint is dedicated to developing technologies to treat patients with chronic autoimmune diseases. The company is pioneering a new treatment paradigm, using electrical pulses that activate the body’s innate “inflammatory reflex,” for rheumatoid arthritis (RA), Crohn’s disease and other chronic autoimmune diseases as a safe, cost-effective alternative to drugs and biologics.
“SetPoint is reshaping the treatment paradigm of chronic inflammatory diseases with potentially less risk and lower cost than drug therapy” says Rob Lake, Managing Director and Head of Life Sciences at Runway. “We are thrilled to include SetPoint in Runway’s portfolio of innovative life sciences companies and support its effort to ensure that more patients will have access to what is a remarkable reimagining of patient care for those who depend on autoimmune drug therapy, offering a more effective treatment and fewer side effects than anti-inflammatory medication.”
“After much due diligence, it was clear that Runway appreciates SetPoint’s potential,” said Murthy V. Simhambhatla, Ph.D., President and CEO of SetPoint Medical. “Working with a highly regarded lender who understands our business strategy, and has a reputation for being a flexible partner, is precisely what we need to fuel the development of our novel therapeutic platform for patients suffering from rheumatoid arthritis.”
The funds will be used to support the ongoing RESET-RA clinical study, which will evaluate the safety and efficacy of the SetPoint bioelectronic platform in patients with moderate-to-severe RA, as well as other development activities as the company advances its technology.
About Runway Growth Capital LLC
Runway Growth Capital LLC is the investment advisor to investment funds, including Runway Growth Credit Fund Inc., which are lenders of growth capital to companies seeking an alternative to raising equity. Led by industry veteran David Spreng, these funds provide senior term loans of $10 million to $70 million to fast-growing companies based in the United States and Canada. For more information on Runway Growth Capital LLC and its platform, please visit our website at www.runwaygrowth.com.
Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition, or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Runway’sfilings with the Securities and Exchange Commission. Runway undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
About SetPoint Medical
SetPoint Medical is a privately held clinical-stage bioelectronic medicine company dedicated to treating patients with chronic autoimmune diseases. SetPoint Medical’s bioelectronic medicine platform is intended to offer patients and providers a treatment alternative for rheumatoid arthritis, inflammatory bowel disease and other chronic autoimmune conditions with potentially less risk and cost than drug therapy. The company is developing a novel bioelectronic medicine platform designed to stimulate the vagus nerve to activate the inflammatory reflex to produce a systemic immune-restorative effect. For more information, visit www.setpointmedical.com.