ADC Therapeutics entered into a $115 million convertible credit facility with funds affiliated with Deerfield Management Company.
Under the convertible credit facility, Deerfield agreed to extend senior secured convertible term loans to ADC in two separate disbursements, each subject to satisfaction of certain conditions. Deerfield agreed to extend (i) an initial disbursement of convertible loans to ADC in the amount of $65 million upon completion of an initial public offering by the company and satisfaction of certain other conditions and (ii) a subsequent disbursement of convertible loans to the company in the amount of $50 million upon receipt of regulatory approval for Lonca and satisfaction of certain other conditions.
Loncastuximab tesirine (Lonca) is ADC’s lead product candidate. It has been evaluated in a 145-patient pivotal Phase 2 clinical trial for the treatment of relapsed or refractory diffuse large B-cell lymphoma.
“We are delighted to add Deerfield as one of our long-term financial partners as we prepare for the submission of a biologics license application for Lonca to the U.S. Food and Drug Administration,” Chris Martin, CEO of ADC Therapeutics, said. “To that end, we are continuing to build out our commercial organization for the launch of Lonca, if approved, in mid-2021 while advancing our diversified pipeline of novel ADCs for patients with hematological cancers and solid tumors.”
ADC Therapeutics is a late clinical-stage oncology-focused biotechnology company. It develops and commercializes antibody drug conjugates (ADCs) for patients suffering from hematological malignancies and solid tumors.
