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AVEO Oncology Announces Restructuring of Existing Term Loan with Closing of New Tranched, $35 Million Debt Facility
August 10, 2020
Source: Businesswire
AVEO Oncology (Nasdaq: AVEO) today announced the closing of a tranched, $35 million debt facility with Hercules Capital, Inc. (NYSE: HTGC) and its affiliates. The new facility has a maturity of 36 months, extendable up to 48 months, and an interest-only period of 12 months, extendable up to 30 months upon the achievement of performance milestones related to the approval and commercialization of tivozanib.
Under the terms of the agreement, the initial tranche of $15 million fully refinanced AVEO’s existing Hercules term loan facility, which had an outstanding principal amount of approximately $9.7 million, providing net new proceeds of $5.3 million. A second $10 million tranche is contingent upon the approval of the tivozanib New Drug Application (NDA) by the U.S. Food and Drug Administration (FDA) as a treatment for renal cell carcinoma (RCC), and certain other terms and conditions. An additional two $5 million tranches will become available after that time – one if product revenues from net sales of tivozanib reach $20.0 million within a specified time frame, and the other at the lender’s consent. As previously announced, the FDA has assigned AVEO’s NDA a Prescription Drug User Fee Act target action date of March 31, 2021.
“The refinancing of our debt facility with Hercules Capital is expected to provide us with access to capital that funds planned operations well into the anticipated launch of tivozanib,” said Michael Bailey, president and chief executive officer of AVEO. “We continue to work closely with the FDA in their review of our NDA, as we build out our commercial organization, explore potentially pivotal immunotherapy-combination studies for tivozanib, and advance our pipeline.”
"We are excited and pleased to be extending and expanding our financing partnership with AVEO as they prepare for the potential approval and launch of tivozanib. Our relationship with AVEO spans nearly 15 years and this most recent financing is another example of our ability to support innovative life sciences companies at all stages of development and through multiple value inflection points," said Bryan Jadot, Senior Managing Director and Life Sciences Group Head for Hercules.
About AVEO Pharmaceuticals, Inc.
AVEO is developing an oncology pipeline designed to provide a better life for patients with cancer. AVEO’s strategy is to focus its resources toward development and commercialization of its product candidates in North America, while leveraging partnerships to support development and commercialization in other geographies. AVEO’s lead candidate, tivozanib (FOTIVDA®) is approved in the European Union and other countries by AVEO’s partner EUSA for the treatment of adult patients with advanced renal cell carcinoma. AVEO is working to develop and commercialize tivozanib in North America as a treatment for renal cell carcinoma and hepatocellular carcinoma. AVEO has previously reported promising early clinical data on ficlatuzumab (anti-HGF mAb) in head and neck cancer, acute myeloid leukemia and pancreatic cancer and is conducting a randomized Phase 2 confirmatory clinical trial of ficlatuzumab in head and neck cancer. AVEO’s earlier-stage pipeline includes several monoclonal antibodies in oncology development, including AV-203 (anti-ErbB3 mAb), AV-380 (anti-GDF15 mAb) and AV-353 (anti-Notch 3 mAb). AVEO is committed to creating an environment of diversity and inclusion as a foundation for innovation.
Contacts
AVEO Contact:
David Pitts, Argot Partners
(212) 600-1902
aveo@argotpartners.com
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