Myriad Genetics secured a five-year, $200 million senior secured term loan from OrbiMed, replacing its previous asset-based lending (ABL) facility. The deal includes $125 million in immediate funding and an option for an additional $75 million through June 2027, maturing in July 2030. Interest is tied to SOFR plus 6.5%, with a 2.5% SOFR floor.
This move signals a shift in Myriad’s financial strategy, providing a more substantial and longer-term capital source compared to its prior ABL arrangement. The company now claims access to over $200 million in cash and available credit, suggesting intentions beyond simple debt refinancing. This capital infusion likely supports acquisitions, internal R&D expansion, or other strategic investments to bolster its molecular diagnostics and precision medicine portfolio.
The shift from ABL to a term loan raises questions about Myriad’s near-term performance and future outlook. ABL facilities, while flexible, often imply higher risk and more restrictive covenants. This new agreement with OrbiMed, a prominent healthcare investor, suggests a vote of confidence in Myriad’s long-term growth potential. However, the specific terms, including any performance-based milestones or equity components, remain undisclosed.
The influx of capital has immediate implications for Myriad’s competitive positioning in the rapidly evolving molecular diagnostics market. It provides the financial firepower to accelerate product development, pursue partnerships, and potentially expand its market share through acquisitions. This move could disrupt the competitive dynamics within the sector, impacting smaller players and challenging larger, established diagnostics companies.
The success of this strategy depends on Myriad’s ability to translate this capital into tangible growth. The company needs to demonstrate a clear roadmap for how these funds will be deployed to drive innovation, expand its product pipeline, and achieve sustainable market differentiation. Investors and competitors will closely watch Myriad’s upcoming earnings calls and future announcements for details on its strategic direction and evidence of effective capital allocation. The diagnostic market’s increasing demand for innovative and cost-effective solutions means Myriad must act decisively to capitalize on this financial boost.
Jon Napitupulu is Director of Media Relations at The Clinical Trial Vanguard. Jon, a computer data scientist, focuses on the latest clinical trial industry news and trends.
1 Comment
Strategic Partnerships And FDA Milestones Reshape Clinical Trials - Healthifies
3 months ago[…] On the financial front, Myriad Genetics recently announced it has secured a $200 million credit facility. This capital infusion aims to strengthen its genetic testing business, particularly in oncology, women’s health, and mental health. With a focus on expanding precision medicine capabilities, the funding will enable Myriad to support upcoming clinical trials and scale laboratory infrastructure to meet increasing demand for comprehensive genomic testing (source). […]