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Bridge Bank Closes $5.5MM Upsize For Fennec Pharmaceuticals

June 29, 2020, 08:40 AM
Filed Under: Pharmaceuticals
Related: Bridge Bank

Fennec Pharmaceuticals Inc., a specialty pharmaceutical company focused on the development of PEDMARK™ (a unique formulation of sodium thiosulfate) for the prevention of platinum-induced ototoxicity in pediatric patients, today announced an amendment to its existing senior debt facility with the Life Sciences Group at Bridge Bank increasing the size of the facility from $12.5 million to $18 million.

The U.S. operating subsidiary of Fennec Pharmaceuticals Inc., entered into a First Amendment to the 2019 Loan and Security Agreement with Bridge Bank. This amendment provides Fennec with an $18 million debt facility comprised of two term loans.  Term Loan A consists of $12.5 million to be funded upon New Drug Application (NDA) approval of PEDMARK™ in the U.S. Term Loan B consists of $5.5 million to be funded upon the occurrence of a revenue event in 2021.  The interest-only period for the facility has the ability to be extended from 18 months to 24 months from the funding of Term Loan A, provided that Term Loan B is funded and certain conditions are met.  The Company intends to use the proceeds from the loans to provide working capital for commercialization activities for PEDMARK™ upon NDA approval.

“This loan amendment further strengthens our balance sheet and provides us with additional operating capital and flexibility as we prepare for the launch of PEDMARK™, if approved, in the second half of 2020,” said Robert Andrade, chief financial officer of Fennec Pharmaceuticals.  “We are pleased to expand our relationship with Bridge Bank, a premier lending institution with a broad scope of services.”

“We have been working with Fennec for the past two years and are excited to continue working with the company as they transition to becoming a commercial-stage organization,” said Ms. Lindsay Fouty, vice president in Bridge Bank’s Life Sciences Group. “We are pleased to provide flexible debt capital to support the launch of PEDMARK™, which addresses an important unmet medical need for the prevention of ototoxicity in children receiving cisplatin chemotherapy.”

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