WEST LAFAYETTE, Ind.--(BUSINESS WIRE)-- Endocyte, Inc., a biopharmaceutical company developing targeted small molecule drug conjugates, announced that it has entered into a loan and security agreement with MidCap Financial and Silicon Valley Bank, providing access to up to $15 million of capital to the company.
Endocyte received a first tranche of $10 million upon the closing of the transaction, and a second tranche of $5 million will be available upon completion of certain predetermined milestones. The new credit facility will replace the company's existing credit facility, and approximately $5.1 million of the proceeds will be used to make a final payment under the existing facility. The remainder of the proceeds will be used to satisfy working capital needs associated with the ongoing development of Endocyte's small molecule drug conjugates and companion imaging diagnostics. Endocyte also issued the lenders warrants to purchase shares of its capital stock.
About Endocyte
Endocyte, Inc. is a biopharmaceutical company developing targeted therapies for the treatment of cancer and inflammatory diseases. Endocyte uses its proprietary technology to create novel small molecule drug conjugates, or SMDCs, and companion imaging diagnostics, targeting receptors that are over-expressed on diseased cells. Endocyte's most advanced SMDC candidate, EC145, is being evaluated in a phase 2 randomized clinical trial in women with advanced ovarian cancer. Final results from this phase 2 trial are expected to be released in early 2011. Following the release of the final results, Endocyte currently expects to initiate enrollment of patients in a phase 3 clinical trial in the same patient population. Endocyte is based in the Purdue Research Park of West Lafayette.
About MidCap Financial, LLC MidCap Financial is a commercial finance company focused on middle market lending in the healthcare and life sciences industries. MidCap specializes in $5 million to $200 million loans. The company is headquartered in Bethesda, Md., with offices in Chicago and Los Angeles, and focuses on investments in four areas: Life sciences loans, primarily to pharmaceutical, biotech and medical device companies; Working Capital loans collateralized by third-party accounts receivable and other assets; Real estate loans to senior housing, skilled nursing facilities and medical office buildings; and Leveraged loans to healthcare companies backed by private equity sponsors.
Additional information about MidCap Financial can be found at www.midcapfinancial.com.
About Silicon Valley Bank
Silicon Valley Bank is the premier commercial bank for companies in the technology, life science, venture capital, private equity and premium wine industries. SVB provides a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 26 U.S. offices and international operations in China, India, Israel and the United Kingdom. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (NASDAQ: SIVB), with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at www.svb.com. Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.
CONTACT:
Purdue Research Park
Cynthia Sequin, 765-588-3340
[email protected]
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