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Celladon Secures $25MM Credit Facility From Hercules Growth Capital

August 01, 2014, 07:12 AM
Filed Under: Medical

Celladon Corporation, a clinical-stage biotechnology company applying its leadership position in the field of gene therapy and calcium dysregulation, has entered into a credit facility with Hercules Technology Growth Capital, Inc. and its affiliate lenders. The credit facility provides for up to $25 million of loans.

Celladon drew a first tranche of $10 million at the closing of the new credit facility. A second tranche of up to $15 million can be drawn, at Celladon's option, prior to May 31, 2015. This option may be exercised if data from the ongoing Phase 2b trial of MYDICAR supports the continued development of MYDICAR for its Breakthrough Therapy indication to either a Phase III study or registration for approval, as reasonably determined by Celladon's senior management and board of directors. MYDICAR has received Breakthrough Therapy designation from the FDA for reducing hospitalization for heart failure in Nab-negative NYHA class III or class IV heart failure patients who are not in immediate need of a left ventricular assist device or heart transplant. Celladon expects to report results from the Phase 2b trial in April 2015.

Celladon plans to use the proceeds from the credit facility to provide additional funding for the development of MYDICAR, for other development programs in its pipeline, and for general corporate purposes. Further information with respect to the loan arrangement with Hercules will be contained in a Current Report on Form 8-K to be filed by August 6, 2014 by Celladon with the Securities and Exchange Commission.

"This credit facility with Hercules will provide additional funding in support of our rapidly advancing pipeline," commented Paul Cleveland, President and Chief Financial Officer of Celladon. "It demonstrates our conviction that MYDICAR could represent a breakthrough in the treatment of advanced heart failure, and it also represents a vote of confidence in our company by Hercules."

Celladon is a clinical-stage biotechnology company applying its leadership position in the field of gene therapy and calcium dysregulation to develop novel therapies for diseases with tremendous unmet medical needs. MYDICAR, the Company's most advanced product candidate, uses gene therapy to target SERCA2a, which is an enzyme that becomes deficient in patients with heart failure. Celladon recently completed enrollment of a 250 patient Phase 2b trial evaluating the efficacy of MYDICAR in reducing the frequency of, or delaying heart failure-related hospitalizations. This randomized, double-blind, placebo-controlled, multinational trial is evaluating a single intracoronary infusion of MYDICAR versus placebo added to a maximal, optimized heart failure regimen in patients with New York Heart Association class III or IV symptoms of chronic heart failure due to systolic dysfunction.

Hercules Technology Growth Capital, Inc. is a leading specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science, and energy & renewable technology industries, at all stages of development. Since inception (December 2003), Hercules has committed more than $4.2 billion to over 270 companies and is a lender of choice for entrepreneurs and venture capital firms seeking growth capital financing.

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