ChemoCentryx has secured a credit facility of up to $100 million provided by Hercules Capital.
The $100 million credit facility from Hercules Capital comprises three tranches over the next two years to be drawn at ChemoCentryx’s discretion as follows: the first tranche of $40 million is available through December 2020, $20 million of which would be available upon the submission of the avacopan New Drug Application (NDA) for the treatment of ANCA vasculitis; the second tranche of $30 million is available through December 2021 upon NDA approval of avacopan for the treatment of ANCA vasculitis (NDA Approval); the remaining $30 million is available through December 2022, subject to certain conditions.
The term loan has a 30-month interest-only period from initial funding, which is extendable up to 36 months upon the achievement of certain milestones and further extendable up to 48 months upon the achievement of additional milestones and matures in 48 months, further extendable to 60 months upon NDA Approval. Intended use of the capital is for the advancement of avacopan through its registration filings and commercial launch in ANCA vasculitis, if approved.
“This structured investment represents yet another significant commitment from Hercules and provides an example of the breadth of our platform and our ability to finance life sciences companies through development and into commercialization. We are excited to continue our partnership with the ChemoCentryx management team,” said Scott Bluestein, chief executive officer of Hercules.
ChemoCentryx is a biopharmaceutical company developing new medications targeted at inflammatory and autoimmune diseases and cancer.
