Proceeds of the financing are intended for use to advance ObsEva’s late stage development pipeline including Phase 3 trials of nolasiban in patients undergoing embryo transfer (ET) following in vitro fertilization (IVF), and of linzagolix for the treatment of endometriosis-associated pain and heavy menstrual bleeding due to uterine fibroids, as well as initial commercialization expenses for nolasiban.
“This financing significantly strengthens ObsEva’s financial position by extending our cash runway into the fourth quarter of 2020 as we advance our late stage pipeline toward key clinical and regulatory milestones anticipated later this year,” said Ernest Loumaye, co-founder and CEO of ObsEva.
The non-dilutive financing agreement provides ObsEva with up to $75 million borrowing capacity available in three tranches, with the initial $25 million available upon closing. Each tranche bears interest at a rate of 30 day LIBOR +6.25%, or a minimum of 8.68% per annum. ObsEva is required to make monthly interest-only payments on each tranche prior to the amortization date of August 1, 2022. The debt facility will mature on August 1, 2024.
ObsEva is a clinical-stage biopharmaceutical company focused on the clinical development and commercialization of novel therapeutics for serious conditions that compromise a woman’s reproductive health and pregnancy.