After Regulatory Setback, Spectrum Pharma Secures Up To $65M In Debt Funding

Spectrum Pharmaceuticals Inc (NASDAQ:SPPI) entered into a five-year debt financing agreement with SLR Capital Partners for a term loan…
  • Spectrum Pharmaceuticals Inc (NASDAQ:SPPI) entered into a five-year debt financing agreement with SLR Capital Partners for a term loan facility of up to $65 million. 
  • The company believes this transaction, combined with Spectrum’s existing cash balance of $68 million as of June 30, provides sufficient capital to optimize the commercial launch of Rolvedon (eflapegrastim-xnst) injection and fund Spectrum’s operations through 2024.
  • The first was a $30 million loan drawn upon closing. The remaining $35 million will be made available in three additional tranches subject to achieving pre-specified regulatory and financial milestones.
  • Earlier this month, the FDA approved Rolvedon to decrease the incidence of infection, as manifested by febrile neutropenia, in adult patients with non-myeloid malignancies.
  • The debt funding follows FDA’s Oncologic Drugs Advisory Committee voted 9-4 against Spectrum poziotinib benefit-risk profile.
  • One of the highlighted issues is delayed confirmation of benefit, as the company has yet to enroll patients in its proposed confirmatory study.
  • Futility analysis for the confirmatory trial is expected in 2024, with topline results in 2026.
  • Price Action: SPPI shares are down 33.2% at $0.42 on the last check Friday.
Total
0
Shares
Related Posts