Dynavax Technologies closed on a $175 million non-dilutive term loan agreement with CRG, a healthcare focused investment firm.
Dynavax will receive $100 million in a first tranche and up to an additional $75 million may be borrowed in a second tranche at Dynavax’s option.
“This non-dilutive financing, together with our $192 million in cash as of December 31, 2017, will enable us to implement our commercialization plan for HEPLISAV-B in the United States, and expand and advance clinical studies of our immuno-oncology product candidates,” said Michael Ostrach, chief financial officer of Dynavax. “Our strong cash position will support the launch of our HEPLISAV-B field sales team next week and the phase 3 clinical trial of SD-101 and additional Phase 2 trials planned to start later this year.”
Interest on the term loans will accrue at a rate of 9.5% per annum with the principal to be repaid at maturity on December 29, 2023. The principal can be repaid at any time after the second anniversary with no additional prepayment fees. Further information on the loan arrangement is available in the current report on form 8-K to be filed by the company with the SEC.
HEPLISAV-B was approved by the U.S. Food and Drug Administration in November 2017 for the prevention of infection caused by all known subtypes of hepatitis B virus in adults age 18 years and older. Dynavax commercially launched HEPLISAV-B in the U.S. in January 2018.
