On March 10, 2021 Humanigen, Inc. (Nasdaq: HGEN) ("Humanigen"), a clinical stage biopharmaceutical company focused on preventing and treating an immune hyper-response called ‘cytokine storm’ with its lead drug candidate, lenzilumab, reported that it has obtained a term loan facility from Hercules Capital (NYSE: HTGC), a leader in customizing debt financing for companies in the life sciences market (Press release, Humanigen, MAR 10, 2021, View Source [SID1234576425]). Under the terms of the facility, Hercules will provide Humanigen up to $80 million of secured debt financing.
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"The term loan facility provides working capital to support the production of lenzilumab, strengthens our balance sheet and increases our financial flexibility as we prepare for the potential Emergency Use Authorization and commercial launch of lenzilumab in 2021," said Cameron Durrant, MD, MBA, Chief Executive Officer, Humanigen.
The facility consists of a $25 million initial term loan, with up to an additional $55.0 million available for future draws subject to achievement of future milestones and satisfaction of other conditions. The facility provides for an interest-only period and the four-year term is extendable under certain conditions. Loans under the facility are secured by the company’s assets.
"Hercules is excited to be partnering with Humanigen as it advances lenzilumab for COVID-19 and other indications. This structured financing represents a significant commitment from Hercules, which is consistent with our goal of supporting innovative life sciences companies," said Himani Bhalla, Principal at the Life Sciences group at Hercules. "This is an example of the breadth of our platform and our ability to finance life sciences companies through all stages of development."