ST. HELIER, Jersey--(BUSINESS WIRE)--Novocure, a commercial stage oncology company, announced today that it has entered into a term loan agreement with an investment fund managed by Pharmakon Advisors LP. The agreement provides Novocure with up to $100 million of available borrowing capacity.
Under the terms of the agreement, Pharmakon will provide $25 million at closing. Up to $75 million of additional funding will be available to the company, at its option, through June 30, 2016. The agreement has a term of 5 years from the initial funding date.
“This important transaction provides Novocure with non-dilutive capital to bridge working capital requirements during a period of growth for the company,” stated Wilco Groenhuysen, Chief Financial Officer of Novocure. “The optional borrowing amounts provide added flexibility to ensure Novocure is in a strong position to advance commercial and clinical development activities in upcoming years.”
“We are pleased to partner with Novocure in this transaction,” said Pedro Gonzalez de Cosio, Managing Member of Pharmakon Advisors. “We believe TTFields therapy is a breakthrough oncology therapy that has tremendous potential for the treatment of glioblastoma. The increase in long-term survival demonstrated in their EF-14 Phase III clinical trial in newly diagnosed glioblastoma validates Tumor Treating Fields Therapy as an important cancer treatment modality. We look forward to partnering with Novocure as they commercialize Tumor Treating Fields in glioblastoma and conduct clinical trials in other solid tumors.”
Armentum Partners acted as financial advisor to Novocure for the debt transaction. Proskauer Rose LLP acted as legal advisor to Novocure.
About Tumor Treating Fields Therapy
Tumor Treating Fields (TTFields) therapy is delivered by a portable, non-invasive medical device designed for continuous use by patients. In vitro and in vivo studies have shown that TTFields therapy slows and reverses tumor growth by inhibiting mitosis, the process by which cells divide and replicate. TTFields therapy creates a low intensity, alternating electric fields within a tumor that exert physical forces on electrically charged cellular components, preventing the normal mitotic process and causing cancer cell death.
The US FDA has approved the TTFields therapy delivery system, Optune (previously known as the NovoTTF-100A System), for use as a treatment for adult patients (22 years of age or older) with histologically-confirmed GBM, following histologically or radiologically-confirmed recurrence in the supra-tentorial region of the brain after receiving chemotherapy. The device is intended to be used as monotherapy, and is intended as an alternative to standard medical therapy for GBM after surgical and radiation options have been exhausted. Patients should only use Optune under the supervision of a physician properly trained in use of the device. Full prescribing information is available at www.optune.com/safety or by calling toll free 1-855-281-9301.
Novocure is a private Jersey Isle oncology company pioneering a novel therapy for solid tumors called TTFields. Novocure US operations are based in Portsmouth, NH and New York, NY. Additionally, the company has offices in Switzerland and Japan and a research center in Haifa, Israel. For additional information about the company, please visit www.novocure.com.
About Pharmakon Advisors
Investment funds managed by Pharmakon Advisors have raised over $1 billion to provide financing to commercial stage companies in the biotech, specialty pharma, diagnostic and medical device industries. Pharmakon Advisors' management team has a long and successful track record of structuring and investing in secured financings to life sciences companies. To date, Pharmakon Advisors has structured and executed fourteen financings.