Eloxx Pharmaceuticals entered into a debt facility of up to $30 million with Hercules Capital, a specialty financing lender for life science and technology companies. Eloxx has drawn the initial tranche of $12.5 million and used the proceeds to repay in full amounts outstanding under its existing debt facility. The remaining funds under the new facility will be available in additional tranches upon the achievement of specific clinical milestones and/or other terms and conditions.

“This non-dilutive financing will provide additional capital to advance our product pipeline, including ELX-02, which is currently in Phase 2 clinical trials in cystic fibrosis patients affected by nonsense mutations, as well as also our preclinical programs focused on treating rare diseases created through our TURBO-ZM technology platform,” Sumit Aggarwal, president and CEO of Eloxx Pharmaceuticals, said. “We are incredibly pleased to have the support of a leading biotechnology lender such as Hercules.”

“Hercules is pleased to enter into this financing partnership with Eloxx as it continues to advance its pipeline of both clinical and preclinical assets,” Janice Bourque, managing director at Hercules Capital, said. “This investment in Eloxx provides another example of our ability to finance life sciences companies through multiple stages of development and through various value inflection points.”