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Aptevo Therapeutics Secures $25 Million Non-Dilutive Financing from Midcap Financial Trust
Extends Cash Runway into Q3 2021The Current Cash Balance is Anticipated to Create a Sufficient Timeline to Complete the APVO 436 Phase I(a) Dosing Cohorts
About this update from Aptevo Therapeutics Inc.
[{"type":"text","content":"Extends Cash Runway into Q3 2021The Current Cash Balance is Anticipated to Create a Sufficient Timeline to Complete the APVO 436 Phase I(a) Dosing Cohorts Which Pre-Clinical Modelling Predicts May Deliver an Efficacious DoseSEATTLE, WA / ACCESSWIRE / August 6, 2020 / Aptevo Therapeutics Inc. (NASDAQ:APVO), a biotechnology company focused on developing novel immuno-oncology therapeutics based on its proprietary ADAPTIR™ bispecific technology platform, announced today that it has reached agreement with MidCap Financial Trust (\"MidCap\") for a $25 million term loan facility. The loan was fully funded at closing.Jeff Lamothe, Chief Financial Officer of Aptevo stated: \"We have built a strong partnership with MidCap over the past four years and are pleased to once again partner with them. The size and structure of this non-dilutive loan was positively influenced by our RUXIENCE™ and IXINITY® royalty streams. We believe this financing, along with anticipated quarterly royalty payments from Pfizer and Medexus, related to RUXIENCE and IXINITY respectively, provide Aptevo with a solid cash position to continue development of APVO 436 and our preclinical candidates. This financing extends our cash runway into the third quarter of 2021, which, based on pre-clinical modelling, is beyond the currently anticipated time required to achieve a potentially efficacious dose level in our APVO 436 Phase I(a) clinical trial. Our previously announced process with Piper Sandler to sell our RUXIENCE royalty stream and our IXINITY royalty stream and milestones is underway.\"The MidCap loan has a 48 month term, is interest-only for the first 18 months, with straight-line amortization for the remaining 30 months and bears interest at a rate of one month LIBOR plus 6.25% per annum, subject to a 1.50% LIBOR floor. The loan includes additional repayment provisions should either or both of the royalties or milestones related to IXINITY or royalties related to RUXIENCE be sold during the term of the loan. See the 8-K, which will be filed within the next four business days, for additional details related to the loan agreement.About Aptevo Therapeutics Inc.Aptevo Therapeutics Inc. is a clinical-stage biotechnology company focused on developing novel immunotherapies for the treatment of cancer. The Company's lead clinical candidate, APVO436, and preclinical candi...