On November 2, 2017 Puma Biotechnology, Inc. (Nasdaq: PBYI), a biopharmaceutical company, reported that it has entered into a loan agreement with Silicon Valley Bank, the bank of the world’s most innovative companies and their investors, and Oxford Finance, a specialty finance firm that provides senior debt to life sciences and healthcare services companies, for a term loan of up to $100 million, subject to funding in two tranches (Press release, Puma Biotechnology, NOV 2, 2017, View Source [SID1234521523]).
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Puma received gross proceeds of $50 million from the first tranche of the credit facility upon closing on October 31 and intends to use the funds for general corporate purposes and to further support NERLYNX commercial initiatives. The second tranche of $50 million may be drawn at Puma’s option and subject to the achievement of certain milestones. The loan will mature on October 31, 2022. Additional information on the loan agreement will be filed with the Securities and Exchange Commission as a Current Report on Form 8-K.
Alan H. Auerbach, Chairman, Chief Executive Officer and President of Puma Biotechnology, said, "We are pleased to be able to enter into this loan facility with Silicon Valley Bank and Oxford Finance. The proceeds from this financing will be used to continue to support the NERLYNX commercial activities as well as ongoing research with neratinib in other indications. This will allow the Company to continue the momentum that we have experienced this year into 2018 and beyond."
"We’re proud to support Puma as they work to reduce the risk of breast cancer recurrence and develop novel therapies for the treatment of cancer," said Anthony Flores, director for Silicon Valley Bank’s Southwest Life Science Practice. "It’s our pleasure to arrange this financing for Puma as they commercialize NERLYNX and endeavor to bring this impactful therapy to patients throughout the world."
"Oxford is pleased to provide financing to Puma in support of its commercial initiatives for NERLYNX," said Christopher A. Herr, senior managing director at Oxford Finance. "Puma’s seasoned management team and the demonstrated clinical benefits of NERLYNX provide us confidence in supporting the Company’s continued growth and development."