Belgium's TiGenix has hauled in about $13.7 million in debt financing, piling up cash as it works through Phase III with a stem cell treatment.
Under the four-year deal, financier Kreos Capital will pay out $6.9 million in February, $3.4 million in May and another $3.4 million by September, the companies said, giving TiGenix the money it needs to advance Cx601 through late-stage trials. The treatment combats complex perianal fistulas in Crohn's disease patients, eradicating growths that worsen incontinence at a better rate than current therapies, TiGenix said.
The latest raise follows a $16.4 million stock sale last month, and the cash infusion will help TiGenix push its pipeline of cell therapies, which includes a Phase II treatment for rheumatoid arthritis and a Phase I autoimmune disease drug.
"In combination with the recent strategic investment ... this funding significantly strengthens our financial position and allows us to aggressively expand our pipeline of proprietary cell therapy products," CEO Eduardo Bravo said in a statement. "Importantly, it enables us to independently finalize the Phase III trial with our lead product Cx601 and file for European registration, and thus capture significantly more value from a potential partnering agreement."
Today's TiGenix is the result of a 2011 merger with Spain's Cellerix. Cx601 is a holdover from the Spanish company, and TiGenix derives most of its revenue from ChondroCelect, an on-the-market regenerative therapy for knee cartilage.
- read the announcement