Rocket Pharmaceuticals has entered into a credit facility agreement of up to $150m with Hercules Capital to support the ongoing development of its cardiovascular portfolio.
The financing arrangement extends the biotechnology company’s projected operational cash runway into the third quarter of 2028 when combined with existing reserves, with further drawdowns potentially extending funding into 2029.
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Rocket plans to use the proceeds to advance its clinical pipeline, primarily focusing on its pivotal Phase II trial of RP-A501 for Danon disease.
As of 30 June 2026, the company held $283.7m in cash, cash equivalents and investments. Under the terms of the agreement, Rocket drew an initial $35m upon closing.
An additional $35m remains accessible at Rocket’s option during designated periods, subject to contractual terms.
A further $30m tranche may become available upon reaching a specified clinical milestone in the Danon programme, whilst the final $50m tranche remains subject to approval by the investment committee at Hercules Capital.
Rocket Pharmaceuticals CEO Gaurav Shah said: “Building on the sale of our priority review voucher, this financing diversifies our sources of capital and strengthens our ability to execute and deliver on our cardiovascular strategy.
“The staged structure provides flexibility to align additional funding with progress across our programmes. We remain focused on allocating capital thoughtfully, executing the pivotal Danon study and advancing genetic medicines for patients with serious inherited heart diseases.”
Hercules Capital senior managing director and life sciences group head R. Bryan Jadot said: “Rocket is advancing toward important milestones across its cardiovascular pipeline, led by the pivotal Danon programme.
“We are pleased to provide a flexible financing solution that supports the Company’s development priorities. We look forward to working alongside Rocket as it builds on its expertise in cardiovascular genetic medicines.”
The facility carries an initial 30-month interest-only period alongside a 48-month maturity, with extensions accessible upon achieving designated milestones.
The transaction also includes warrants to purchase shares of common stock in Rocket Pharmaceuticals.
LifeSci Capital acted as financial adviser to Rocket on the term loan, while PJT acted as capital markets adviser. Additional details regarding the credit agreement will be submitted in regulatory filings with the Securities and Exchange Commission.
Rocket Pharmaceuticals develops genetic medicines for rare as well as life-threatening diseases, with a focus on cardiovascular disorders that are inherited.
In April this year, Rocket Pharmaceuticals signed an agreement to sell its rare paediatric disease priority review voucher (PRV) for $180m to advance its gene therapy pipeline.
