The life sciences group at Bridge Bank amended Fennec Pharmaceuticals’ existing senior debt facility, increasing the size of the facility from $12.5 million to $18 million.
Fennec Pharmaceuticals is a specialty pharmaceutical company focused on the development of PEDMARK, a unique formulation of sodium thiosulfate for the prevention of platinum-induced ototoxicity in pediatric patients.
The U.S. operating subsidiary of Fennec Pharmaceuticals entered into a first amendment to the 2019 loan and security agreement with Bridge Bank. This amendment provides Fennec with an $18 million debt facility composed of two term loans. Term loan A consists of $12.5 million to be funded upon New Drug Application (NDA) approval of PEDMARK in the U.S. Term loan B consists of $5.5 million to be funded upon the occurrence of a revenue event in 2021. The interest-only period for the facility has the ability to be extended from 18 months to 24 months from the funding of term loan A, provided that term loan B is funded, and certain conditions are met. Fennec Pharmaceuticals intends to use the proceeds from the loans to provide working capital for commercialization activities for PEDMARK upon NDA approval.
“This loan amendment further strengthens our balance sheet and provides us with additional operating capital and flexibility as we prepare for the launch of PEDMARK, if approved, in the second half of 2020,” Robert Andrade, CFO of Fennec Pharmaceuticals, said. “We are pleased to expand our relationship with Bridge Bank, a premier lending institution with a broad scope of services.”
“We have been working with Fennec for the past two years and are excited to continue working with the company as they transition to becoming a commercial-stage organization,” Lindsay Fouty, vice president of Bridge Bank’s life sciences group, said. “We are pleased to provide flexible debt capital to support the launch of PEDMARK, which addresses an important unmet medical need for the prevention of ototoxicity in children receiving cisplatin chemotherapy.”