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.
Approved Indication
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.
About Novocure
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.
Copyright Business Wire 2015