Pliant Therapeutics, a clinical stage biotechnology company focused on discovering and developing novel therapeutics for the treatment of fibrosis, entered into a loan facility agreement with Oxford Finance for up to $100 million of non-dilutive financing. This facility will support the continued clinical development of PLN-74809, an oral, small molecule, dual selective inhibitor of αvß6 and αvß1 integrins, in the lead indications of idiopathic pulmonary fibrosis (IPF) and primary sclerosing cholangitis (PSC).
“This non-dilutive facility strengthens our financial position, balances our near-term capital requirements and supports the advancement of our pipeline through multiple near-term clinical milestones,” Keith Cummings, M.D., MBA, CFO of Pliant Therapeutics, said. “With our cash runway now extended to mid-2024, we are focused on delivering the highly anticipated data readouts from our Phase 2a INTEGRIS-IPF and INTEGRIS-PSC trials.”
Under the terms of the loan agreement, Pliant drew $10 million of an initial $25 million tranche at closing, with the remaining $15 million available through the end of the year. The company has access to an additional $75 million over three tranches, $50 million of which is based on pre-determined milestones, and $25 million at Oxford’s discretion. The loan carries an interest-only period of 48 months (extendable to 60 months) and total term of 60 months (extendable to 72 months). Interest is based on a floating rate which is subject to both a floor and a cap. There are no warrants or financial covenants in the agreement.
As of Dec. 31, 2021, the company had cash, cash equivalents and short-term investments of $200.6 million. With the initial draw of $10 million at closing, the company had pro-forma cash, cash equivalents and short-term investments as of Dec. 31, 2021 of $210.6 million. With this facility in place, Pliant expects to be able to fund operations to mid-2024.
