aibioReplimune amends Hercules loan, draws $35 million and delays repayment to October 2027
Tickers REPL
The Third Amendment raises the third tranche to $35 million, which was funded at closing, and sets the interest rate at the greater of 8.50% or Prime plus 1.75%. Replimune says its cash runway now reaches late into the first quarter of 2027.
Key facts
- Company
- Replimune Group, Inc. (NASDAQ: REPL)
- News type
- Debt Financing
- Primary source
- Replimune Group, Inc. Form 8-K filed February 3, 2026 (SEC EDGAR)
Replimune Group, Inc. (Nasdaq: REPL) amended its loan agreement with Hercules Capital, Inc. on January 29, 2026 and drew $35 million at closing. The company disclosed the Third Amendment to Loan and Security Agreement in a Form 8-K filed February 3, 2026. The change adds a larger third tranche, cuts the fourth, raises the sixth, changes the interest rate and pushes the start of principal repayment from October 1, 2026 to October 1, 2027.
Who is lending
Replimune and certain subsidiaries, the Borrowers, signed the amendment with Hercules Capital, Inc., which acts as administrative agent and collateral agent. The amendment says other financial institutions may join the loan as lenders. The loan agreement dated October 6, 2022 was already modified by two earlier amendments, dated June 28, 2023 and December 22, 2023. The 8-K names no placement agent, underwriter or financial advisor for this amendment.
What changes in the tranches
The third tranche rose from $30 million to $35 million, and its availability now runs until June 15, 2026. The $35 million was funded on January 29, 2026. The fourth tranche fell from $50 million to $30 million and is available until September 30, 2026, or 60 days after the approval milestone is achieved. The fifth tranche of $50 million is now available until December 31, 2027, or 60 days after the revenue milestone is achieved. The sixth tranche rose from $25 million to $40 million, and the revenue milestone date moved to September 30, 2027.
The interest rate is now the greater of 8.50% and the Prime Rate plus 1.75%, as the loan agreement defines Prime Rate. The company says the full text of the amendment will be filed as an exhibit to its Quarterly Report on Form 10-Q for the quarter ended December 31, 2025.
Cash and the runway
On the same day, Replimune reported results for its fiscal third quarter ended December 31, 2025 in a news release. The release says the amendment includes the $35 million draw and the potential to draw another $120 million at post approval milestones, and that it delays debt repayment from 2026 to 2027.
Cash, cash equivalents and short-term investments were $269.1 million at December 31, 2025, down from $483.8 million at the fiscal year ended March 31, 2025. The company attributes the decline to cash burn from operating activities. Net loss for the fiscal third quarter was $70.9 million, against $66.3 million a year earlier. Research and development expenses were $53.1 million, and selling, general and administrative expenses were $18.7 million. The company says existing cash will fund operations late into the first quarter of calendar 2027, a projection that includes potential RP1 commercialization but excludes any revenue.
The annual report shows the longer trend. Its 10-K, filed May 22, 2025 for the fiscal year ended March 31, 2025, reports a net loss of $247,297 thousand, against $215,794 thousand the year before, and net cash used in operating activities of $192,250 thousand, against $185,467 thousand.
The trial data behind the filing
The 10-K cites data from the ARTACUS trial of RP1 monotherapy in solid organ transplant recipients with skin cancers: 23 evaluable patients with cutaneous squamous cell carcinoma (20) and Merkel cell carcinoma (3), with an objective response rate of 34.5% and a complete response rate of 21%. That is a small group. The confirmatory IGNYTE-3 Phase 3 trial of RP1 with nivolumab, which the release says will enroll approximately 400 patients, dosed its first patient in August 2024, according to the same report.
The regulatory calendar
The release says the BLA resubmission for RP1 (vusolimogene oderparepvec) in anti-PD-1 failed melanoma was accepted by the FDA in October 2025, with a Prescription Drug User Fee Act target action date of April 10, 2026. Chief Executive Officer Sushil Patel, Ph.D., said the company has been engaged with the FDA in the review of the resubmission and that commercial readiness work is under way. The FDA decision is still ahead.
Its pipeline has three candidates: RP1, its lead, plus RP2 and RP3. The IGNYTE trial of RP1 runs with Bristol Myers Squibb Company, which supplies nivolumab at no cost. Sushil Patel signed the 8-K.