On July 28, 2022 Elevation Oncology, Inc. (Nasdaq: ELEV), a clinical stage biopharmaceutical company focused on the development of precision oncology products for patients with genomically defined cancers, reported that it has secured a $50 million senior secured loan facility from funds managed by K2 HealthVentures, a leading healthcare-focused investment firm (Press release, Elevation Oncology, JUL 28, 2022, View Source;utm_medium=rss&utm_campaign=elevation-oncology-secures-50-million-loan-facility-with-k2-healthventures [SID1234617072]). The initial proceeds from the facility will primarily support the exclusive license of EO-3021 (SYSA1801) outside of Greater China from CSPC Pharmaceutical Group and the execution of the Company’s pipeline.
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"This financing supports the expansion of our clinical oncology pipeline with an exciting new opportunity in precision oncology, furthering our mission to bring important new medicines to patients in need," said Joseph Ferra, Chief Financial Officer of Elevation Oncology. "We are pleased to partner with K2 HealthVentures, a premier partner known for its strategic investments in promising healthcare companies and assets, and we believe this transaction speaks to the significant potential of both seribantumab and EO-3021."
Austin Sherwindt, Managing Director at K2 HealthVentures, stated: "We are excited to partner with Elevation Oncology, and provide the company with enhanced financial flexibility to expand and diversify its portfolio, expand its commercial potential and address significant unmet needs in oncology. We believe in the power of precision oncology and the long-term potential of Elevation Oncology’s pipeline development approach, and we look forward to continuing to partner with the company as it advances its clinical stage assets and further expands its precision-based portfolio of medicines."
The facility provides Elevation Oncology with up to $50 million in borrowing capacity in two tranches, with an initial tranche of $30 million available immediately. A second tranche, consisting of up to $20 million, will be available to Elevation Oncology in the future, subject to mutual agreement by Elevation Oncology and K2 HealthVentures.
Elevation Oncology plans to use the initial proceeds from the facility primarily to fund a one-time, upfront payment of $27 million to license EO-3021 (SYSA1801) from CSPC Pharmaceutical Group. Elevation Oncology expects to use any future proceeds from the facility to support the continued development of EO-3021 and seribantumab, for additional pipeline expansion, and for general corporate purposes. Following the licensing of EO-3021 and the initial tranche of the loan facility, Elevation Oncology expects its cash, cash equivalents and marketable securities to fund current operations into 2024.