Melinta Therapeutics announced that it entered into a $30 million growth capital debt financing agreement with Hercules Technology Growth Capital. The initial funding of $20 million closed in December 2014. Melinta has the option, under the terms of the agreement, to draw an additional $10 million tranche in 2015 upon achievement of certain milestones.
The capital raised from this financing will be used to advance Melinta’s pipeline, which includes delafloxacin, an investigational fluoroquinolone undergoing a confirmatory Phase 3 study for the treatment of patients with acute bacterial skin and skin structure infections (ABSSSI), and to repay an existing term loan and for general corporate purposes.
“This transaction provides Melinta with flexible working capital to support our ongoing clinical development of delafloxacin, which has completed one Phase 3 trial in patients with ABSSSI and is on schedule to complete a second, with final Phase 3 data anticipated later this year. In addition, proceeds will support our early stage ESKAPE Pathogen Program, which we expect to yield one or more lead compounds in the next several months,” explained Mary Szela, chief executive officer of Melinta. “Throughout the process, Hercules proved to be an excellent partner who took the time to understand the elements of our business and corporate strategy.”
“We are impressed with the strong clinical and business development progress Melinta has made in the past two years under this new management team: advancing delafloxacin through two Phase 3 ABSSSI trials and completing strong business development transactions,” added Anup Arora, managing director of Hercules Technology Growth Capital. “Our financial support of Melinta fits our stated goal of supporting the growth and milestone achievement of entrepreneurial companies. We look forward to being a part of Melinta’s growth and success.”
Melinta Therapeutics is dedicated to the discovery, development and commercialization of groundbreaking antibiotics to overcome drug-resistant, life-threatening infections.