$30m funding deal extends runway for pharmaceutical group
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Pharmaceutical company 4D pharma has secured a $30m (£22m) credit facility from an American specialist funder.
Oxford Finance provides senior debt to life sciences and healthcare services companies and has backed the Leeds-based business as it continues to develop its live biotherapeutics offer.
The deal provides access to $12.5m now, then two tranches of $7.5m and $10m based on future milestones.
Christopher Herr, senior managing director at Oxford Finance, said: “4D pharma has made remarkable progress in advancing their portfolio of novel drug candidates across multiple therapeutic areas, demonstrating their leadership in the microbiome field.”
4D pharma will only need to make monthly interest-only payments through to September 2023, which would be extended by a year if it achieves development milestones.
Duncan Peyton, CEO of 4D pharma said the initial tranche extends the company’s cash runway into the final quarter of 2022.
“The credit facility from Oxford Finance provides access to additional capital strengthening our financial position and increasing our financial flexibility as we continue to advance our programs to bring first-in-class Live Biotherapeutics to market,” he added.