Acacia Pharma secured a credit facility of up to $30 million with Hercules Technology Growth Capital to support the intended U.S. launch of intravenous amisulpride for the treatment and prevention of post-operative nausea and vomiting.
The first tranche of $10 million was drawn at the closing of the new facility. The existing credit facility with Silicon Valley Bank of £3.75 million ($4.932 million) was repaid in full prior to closing, accelerating payments that would otherwise have been due over the next 12 months. The second tranche of $10 million can be drawn at Acacia Pharma’s option, subject to FDA approval of BARHEMSYS for the management of PONV.
“The proceeds from this credit facility provide Acacia Pharma with additional funding to support our commercialization activities in the U.S. as we continue to prepare for the launch of BARHEMSYS. This is in line with our financing strategy set out during our recent global offering. We appreciate the support of Hercules, its confidence in BARHEMSYS and our management team and look forward to a long and productive working relationship,” said Christine Soden, Acadia CFO.
The third tranche of $5 million can be drawn at any time within 21 months of closing and is conditioned upon Acacia Pharma securing additional finance from the issue of equity or subordinated debt. A fourth tranche of $5 million may be made available at Hercules’ option at any time prior to March 31, 2020. General terms of the loan agreement include interest-only payments for 21 months until March 31, 2020 (18 months if the second tranche is not drawn). Thereafter, Acacia Pharma will repay the loans in equal monthly payments of principal and interest through the scheduled maturity date of December 31, 2021.
Acacia Pharma is a hospital pharmaceutical company focused on the development and commercialization of new nausea and vomiting treatments for surgical and cancer patients.