4D pharma, a pharmaceutical company developing live biotherapeutic products (LBPs), a novel class of drug derived from the microbiome, closed a senior secured credit facility for up to $30 million with Oxford Finance, a specialty finance firm that provides senior debt to life sciences and healthcare services companies.
“The credit facility from Oxford Finance provides access to additional capital, strengthening our financial position and increasing our financial flexibility as we continue to advance our programs to bring first-in-class live biotherapeutics to market,” Duncan Peyton, CEO of 4D pharma, said. “The initial $12.5 million tranche of this financing extends our cash runway into [Q4/22], with multiple clinical catalysts throughout 2021 and 2022.”
“4D pharma have made remarkable progress in advancing their portfolio of novel drug candidates across multiple therapeutic areas, demonstrating their leadership in the microbiome field,” Christopher A. Herr, senior managing director at Oxford Finance, said. “Oxford Finance is pleased to support 4D pharma as it continues to progress its pipeline of innovative live biotherapeutics.”
This financing provides 4D pharma with up to $30 million of cash in three tranches: an initial tranche of $12.5 million at closing, with the remaining $7.5 million and $10 million tranches dependent on the achievement of certain milestones. The facility will require 4D pharma to make monthly interest-only payments through to Sept. 1, 2023, or, subject to the achievement of development milestones, Sept. 1, 2024.
