Daily News: January 4, 2018

Hercules Provides $50MM Facility to ChemoCentryx

ChemoCentryx will receive a $50 million milestone payment from Vifor Fresenius Medical Care Renal Pharma and a $50 million credit facility from Hercules Capital.

The $50 million credit facility from Hercules Capital comprises three tranches. The first tranche of $15 million, of which $5 million was funded upon closing of the agreement, is available through June 2018. The remaining $35 million is available in two additional tranches, subject to certain conditions. The term loan has a 24-month interest-only period from initial funding, which is extendable to 30 months upon the achievement of certain milestones and matures in 48 months.

The milestone payment was triggered by the European Medicines Agency (EMA)’s validation of the company’s Conditional Marketing Authorization (CMA) application for avacopan in the treatment of patients with anti-neutrophil cytoplasmic auto-antibody-associated vasculitis.

“The validation of our CMA application by the EMA is a pivotal milestone in our Kidney Health Alliance with Vifor. It is also a major advance in heightening the awareness of the plight of ANCA vasculitis patients,” said Thomas J. Schall, Ph.D., president and chief executive officer of ChemoCentryx. ”

ChemoCentryx is a biopharmaceutical company developing new medications targeted at inflammatory and autoimmune diseases and cancer.