AcelRx Pharmaceuticals has secured a $20 million loan from Hercules Technology Growth Capital. Earlier this year, the developer attempted to raise $86 million in its IPO, but, like many biotech attempting to raise cash, fell far short of that goal at just $40 million. AcelRx will receive $10 million to start and can draw an additional $10 million before the end of the year. The developer will make interest-only payments for a year, which could continue until September 2012 if certain development goals are met.
"This loan provides AcelRx with the resources to complete our third and last planned Phase III clinical trial for ARX-01," explained CEO Richard King. ARX-01 is a drug/device combo designed to deliver the drug sufentanil to control post-operative pain. "This loan is expected to extend our operating cash runway into the first quarter of 2013."
- here's AcelRx's release