On May 2, 2024 Novocure (NASDAQ: NVCR) reported that it has entered into a new five-year up to $400 million committed senior secured credit facility with funds managed by Pharmakon Advisors, LP. The committed capital will be available to Novocure in four tranches of $100 million (Press release, NovoCure, MAY 2, 2024, View Source [SID1234642615]). The first $100 million was issued at closing, and the second $100 million will be issued by June 30, 2025. An additional $200 million is available to be drawn across two tranches, at Novocure’s discretion and subject to certain milestones, through March 31, 2026. The proceeds will be used to fund working capital needs stemming from Novocure’s anticipated launch in non-small cell lung cancer and settle, upon maturity, Novocure’s convertible notes. Additional information on the agreement will be filed with the U.S. Securities and Exchange Commission as a Current Report on Form 10-Q.
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"As we look ahead to multiple milestones on the horizon for Novocure, we have strengthened our cash position with non-dilutive capital and further solidified our balance sheet," said Ashley Cordova, Novocure’s Chief Financial Officer. "This multi-tranche, delayed-draw, debt facility provides us with the flexibility and financial stability to invest in future growth, specifically in non-small cell lung cancer, as we execute our objectives and advance our clinical pipeline. We are pleased to again partner with Pharmakon on this transaction."
Pharmakon Advisors, LP is a leading investor in non-dilutive debt for the life sciences industry and is the investment manager of the BioPharma Credit funds. Established in 2009, funds managed by Pharmakon Advisors, LP have committed $8.2 billion across 52 investments.