Gemphire Therapeutics entered into a loan and security agreement with Silicon Valley Bank for a term loan of up to $15 million, subject to funding in up to three tranches.

Gemphire immediately drew $10 million upon execution of the loan agreement on July 24, 2017. Gemphire intends to use the capital to support the ongoing development of its product candidate, gemcabene, and for general corporate purposes.

The remaining $5 million under the term loan may be drawn, at Gemphire’s option, subject to the achievement of certain pre-clinical and clinical milestones, prior to July 31, 2018. The term loan will mature on February 1, 2021.

“This loan facility strengthens our cash position as we continue clinical development of our product candidate, gemcabene, for the treatment of cardiometabolic disorders, including dyslipidemia and NASH,” said Jeff Mathiesen, CFO of Gemphire. “We believe that the increased cash provided by this facility further extends our operating runway beyond the projected readouts of our ongoing and currently planned Phase 2b trials and will support our work thereafter to develop our Phase 3 study plans. We are pleased to be collaborating with Silicon Valley Bank and appreciate the support the bank has provided to us.”

Livonia, MI-based Gemphire is a clinical-stage biopharmaceutical company that is committed to helping patients with cardiometabolic disorders, including dyslipidemia and NASH.