Palette Life Sciences, a Swedish life sciences company dedicated to improving patient outcomes, secured a a debt financing facility for up to $40 million from Silicon Valley Bank’s UK branch. The non-dilutive capital provides further financial flexibility to support commercial and product development activities across Palette Life Sciences’ product continuum.
Under the terms of the debt facility, Palette Life Sciences can borrow up to $40 million in three tranches based on the achievement of certain regulatory and commercial milestones and other specified conditions.
Earlier this year, Palette Life Sciences completed a $30 million equity financing. Melker Schörling, a privately held investment firm in Sweden, led the investment. Carnegie Investment Bank acted as financial advisor to the Palette Life Sciences.
“Securing this non-dilutive credit facility is a significant step forward for Palette Life Sciences,” Per Langö, CEO and board director of Palette Life Sciences, said. “This will support the expansion of our global footprint and development of our portfolio of minimally invasive treatments targeting unmet medical needs in radiotherapy and interventional oncology procedures, urology/urogynecology disorders and colorectal conditions. This facility, combined with Palette Life Sciences’ previous equity financings, provides sufficient resources to deliver on our key milestones.”
Palette Life Sciences’ product portfolio leverages its global rights to non-animal stabilized hyaluronic acid (NASHA), a mildly stabilized form of hyaluronic acid, as a foundational platform for its products that serve oncologic, pediatric and incontinence patients. Palette Life Sciences’ flagship product, Barrigel, is made from NASHA. Barrigel is an injectable biodegradable material that separates the prostate from the rectum to protect it during radiation therapy treatment for prostate cancer. Barrigel is being developed for future market introduction in the United States, Japan and Latin America and is approved for use in the European Union and Australia.
“This debt financing provides Palette Life Sciences with considerable flexibility as we continue to expand upon our revenue generation and geographic footprint, including the sale of our exciting organ spacing product, Barrigel,” James Leech, vice president of strategy and corporate development at Palette Life Sciences, said. “The team can focus 100% of its resources on critical commercial and operational activities across the business.”
“This an important time for Palette Life Sciences as it continues to expand its product portfolio and geographic footprint,” Ian Murchie, director at Silicon Valley Bank’s UK branch, said. “We are delighted to support the company to help bring its exciting offering to more patients in need of improved outcomes in urology and urogynecology disorders, colorectal conditions, radiotherapy and interventional oncology procedures.”
