Viridian Therapeutics, Inc., a biotechnology company dedicated to developing innovative treatments for rare and serious diseases, announced that it has entered a royalty financing agreement with DRI Healthcare Acquisitions LP. This deal provides Viridian with up to $300 million in funding and accelerates the timeline for submitting the biologics license application for veligrotug, as well as the topline data readouts from its phase 3 VRDN-003 REVEAL trials targeting thyroid eye disease.
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Steve Mahoney, President and Chief Executive Officer of Viridian, expressed enthusiasm about the partnership with DRI following a competitive process. He explained that this non-dilutive capital strengthens the company’s position as it moves closer to launching its therapies for thyroid eye disease. Mahoney added that the team has a proven track record of execution, and this financing will support their efforts to fully realize the commercial potential of veligrotug and VRDN-003.
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Under the terms of the royalty financing agreement, Viridian will receive an initial payment of $55 million upon signing. The company can also earn up to $115 million through near-term milestones tied to successful topline data from its REVEAL-1 and REVEAL-2 phase 3 studies and U.S. approval of veligrotug. The royalty payments to DRI are tiered based on annual U.S. net sales. Viridian will pay 7.5% on sales up to $600 million, 0.8% on sales between $600 million and $900 million, 0.25% on sales from $900 million up to $2 billion, and no royalties on sales exceeding $2 billion. These proceeds are expected to fully fund the upcoming commercial launches of both key drug candidates.
In addition to the royalty deal, Viridian amended its credit facility with Hercules Capital. This updated agreement offers the company access to additional capital based on milestone achievements, extends its interest-free period, and replaces a previous credit arrangement. The facility provides up to $300 million, including a $50 million drawdown at closing, which yields immediate capital of $30 million after settling outstanding debts.
Viridian also shared updates on its clinical and regulatory progress. The company plans to submit the biologics license application for veligrotug to the FDA soon. The expected timeline for topline results from the VRDN-003 phase 3 trials has been revised. Data from the REVEAL-1 study in active thyroid eye disease patients is now anticipated in the first quarter of 2026. Results from the REVEAL-2 study in patients with chronic thyroid eye disease are expected by the second quarter of 2026.
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