CalciMedica Shares Drop After Securing New Credit Facility

CalciMedica Inc. (Nasdaq: CALC) shares fell 5% to $2.16 on Tuesday, following the announcement of a new credit facility with Avenue Venture Opportunities Fund II, a fund of Avenue Capital Group. The biopharmaceutical company secured up to $32.5 million in funding, with an initial tranche of $10 million fully funded at close. The credit agreement has a term of 3.5 years and includes additional tranches of up to $22.5 million available subject to certain milestones.

The new credit facility is intended to support the continued development of CalciMedica's product pipeline, including the anticipated data from its Phase 2 KOURAGE trial of Auxora in patients with acute kidney injury and hypoxemia. The company expects the net proceeds from the first tranche to fund current operations into the middle of 2026, providing ample runway beyond the KOURAGE readout based on current enrollment projections and anticipated discussions with the FDA on the design of a Phase 3 program in acute pancreatitis.

CalciMedica's Chief Executive Officer, Rachel Leheny, Ph.D., stated, "This credit agreement provides CalciMedica with additional flexibility as we prepare for multiple critical milestones throughout 2025, including anticipated data from our Phase 2 KOURAGE trial of Auxora in patients with acute kidney injury and hypoxemia. Importantly, the facility extends our cash runway to the middle of 2026, providing us ample runway beyond the KOURAGE readout based on our current enrollment projections and our anticipated discussions with the FDA on the design of a Phase 3 program in acute pancreatitis."

Avenue Capital's Senior Portfolio Manager, Chad Norman, commented, "Avenue welcomes this opportunity to support CalciMedica in its mission to deliver treatments to patients with high unmet need. We appreciate the potential of its lead pipeline candidate, Auxora, to treat acute inflammatory and immunologic diseases and look forward to its continued progress in clinical trials."



The extended runway provided by the credit facility supports CalciMedica's clinical programs, particularly the Phase 2 KOURAGE trial and potential FDA discussions on Phase 3 design. The non-dilutive financing preserves shareholder value by avoiding share dilution and maintaining the company's financial stability. The external validation from Avenue Capital Group suggests confidence in CalciMedica's clinical programs and management team.

However, the drop in CalciMedica's share price may reflect investor concerns about the potential dilution of existing shareholders if the company issues new shares to raise additional capital in the future. Additionally, the market may be anticipating a more significant financial impact from the new credit facility, which could lead to a reassessment of the company's valuation.

In conclusion, CalciMedica's new credit facility provides the company with additional flexibility and runway for its clinical trials. However, the drop in share price may indicate investor concerns about potential dilution and the market's reassessment of the company's valuation. As CalciMedica continues to develop its product pipeline and engage with the FDA, investors will closely monitor the company's progress and the potential impact on its share price.