Evelo Biosciences, a clinical stage biotechnology company developing a novel platform of orally delivered medicines acting on the small intestinal axis, SINTAX, entered into a senior secured loan agreement with Horizon Technology Finance Corporation, a specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services and sustainability industries. The $45 million term loan, which provides for three years of interest-only payments followed by a two-year amortization period, replaces the company’s existing senior secured debt which would have begun amortizing in March 2023.
“We are pleased to enter into this partnership with Horizon, as this strategic refinancing enhances our financial position as we look ahead to executing on our upcoming key catalysts,” Marella Thorell, CFO of Evelo, said. “We are currently on-track to deliver three Phase 2 clinical milestones throughout 2023: first, early in the first quarter of 2023, data from the first three cohorts in the Phase 2 trial of EDP1815 in atopic dermatitis; second, in the second quarter of 2023, data from the fourth cohort – the faster release capsule – in the Phase 2 trial of EDP1815 in atopic dermatitis; and third, in the second half of 2023, data from patients in the Phase 2 trial of EDP2939, our first extracellular vesicle (EV) product candidate, in psoriasis.”
“We are excited to work with Evelo in support of their vision to dramatically improve healthcare by harnessing their novel SINTAX platform for the broad treatment of all stages of inflammatory disease,” Gerald A. Michaud, president of Horizon, said. “Their pipeline candidates EDP1815 and EDP2939, in development for atopic dermatitis and psoriasis, are great examples of the potential of SINTAX medicines. We are pleased to support Evelo’s continued development.”