Hercules Capital entered into a $100 million debt financing agreement with G1 Therapeutics, a clinical-stage oncology company. G1 Therapeutics plans to use the proceeds to fund commercialization and further development of trilaciclib, its first-in-class investigational therapy designed to improve outcomes for people with cancer treated with chemotherapy.

“We expect to file a new drug application for trilaciclib later this month for myelopreservation in small cell lung cancer,” Mark Velleca, MD, PhD, CEO of G1 Therapeutics, said. “This financing strengthens our balance sheet as we prepare for commercial launch in our first indication and to execute a robust development plan to evaluate trilaciclib in additional tumor types.”

The $100 million credit facility from Hercules Capital is available in four tranches. The first tranche of $30 million is available at loan closing, of which G1 Therapeutics plans to utilize $20 million immediately, with the remaining $10 million available through March 31, 2021. The second tranche of $20 million will be available upon achievement of U.S. Food and Drug Administration approval of trilaciclib in small cell lung cancer and initiation of a registrational trial in metastatic colorectal cancer, to be available from Jan. 1, 2021 through Dec. 15, 2021. An additional tranche of $30 million will be available from April 1, 2021 through Dec. 31, 2022, subject to certain terms and conditions, including in connection with net product revenues for trilaciclib. A final tranche of $20 million will be available prior to Dec. 31, 2022 to support strategic initiatives, subject to future approvals by Hercules Capital.

The term loan has a 24-month interest only period from date of closing, extendible up to 42 months upon achievement of certain conditions. Maturity of the loan is 48 months from date of closing, extendible up to 60 months upon achievement of certain milestones.

“This structured investment represents a significant commitment from Hercules and provides an example of the breadth of our platform and our ability to finance life sciences companies through all stages of development,” Bryan Jadot, senior managing director and life sciences group head for Hercules Capital, said. “We are excited to begin our partnership with the G1 management team as they advance the new drug application for trilaciclib and prepare for a commercial launch,”

Armentum Partners acted as G1 Therapeutics’s sole financial adviser in connection with the loan facility.