Company Website:
http://www.ignyta.com
SAN DIEGO -- (Business Wire)
Ignyta, Inc. (Nasdaq: RXDX), a biotechnology company focused on
precision medicine in oncology, announced today that it has secured a
$42 million term loan facility from Silicon Valley Bank and Oxford
Finance. Under the loan facility, the company received initial funding
of $32 million, substantially all of which was used to repay the
company's prior loan with Silicon Valley Bank, and has a conditional
option to receive an additional $10 million.
"This loan facility strengthens our balance sheet, enabling us to
aggressively pursue the development of our lead program, entrectinib,
and continue the development of the rest of our precision medicine
oncology pipeline," said Jacob Chacko, M.D., CFO of Ignyta. "We
appreciate the support Silicon Valley Bank and Oxford Finance are
providing to us as we continue to grow."
The loan agreement, in addition to customary conditions, provides that
the second tranche of $10 million may be drawn down by Ignyta at any
time from April 7, 2017 to August 31, 2017, provided that Ignyta has
satisfied certain conditions to trigger the second tranche.
Borrowings under the credit facility will bear interest at a rate of
Prime + 4.35%, and have interest only payments for twenty-four months,
followed by an amortization period of thirty-six months. The interest
only period will be extended by an additional six months in the event
Ignyta has satisfied certain conditions to trigger the six-month
extension. In the event that the interest only period is extended, then
the amortization period will be reduced to thirty months. In connection
with entering the credit facility, Ignyta also agreed to issue warrants
to Silicon Valley Bank and Oxford Finance equal to 1.5% of the funded
amount, with an exercise price equal to the lower of the ten-day average
price of Ignyta’s common stock prior to funding or the price per share
on the day prior to funding.
About Ignyta, Inc.
At Ignyta, we fight cancer – a formidable opponent that manifests as
thousands of different molecularly defined diseases and takes away
millions of lives globally, every year. In this fight, our vision is not
just to shrink tumors but to eradicate residual disease – the source of
cancer relapse and recurrence – in precisely defined patient populations
by 2030. We will work tirelessly to achieve this vision by pursuing an
integrated therapeutic (Rx) and companion diagnostic (Dx) strategy for
treating cancer patients. Our Rx efforts are focused on discovering,
in-licensing or acquiring, then developing and commercializing,
molecularly targeted therapies that, sequentially or in combination, are
foundational for eradicating residual disease. Our Dx efforts aim to
pair these product candidates with biomarker-based companion diagnostics
that are designed to precisely identify, at the molecular level, the
patients who are most likely to benefit from the therapies we develop.
We believe that only through this integrated Rx/Dx approach can we
succeed in this fight.
For more information, please visit: www.ignyta.com.
Forward-Looking Statements:
This press release contains “forward-looking statements” about Ignyta as
that term is defined in the Private Securities Litigation Reform Act of
1995. Statements in this press release that are not purely historical
are forward-looking statements. Such forward-looking statements include,
among other things, references to the potential for Ignyta to draw down
the second loan tranche, the potential for Ignyta to extend the
interest-only period for the loans, the potential for Ignyta to receive
positive interim Phase 2 data in its STARTRK-2 trial of entrectinib,
and the ability of Ignyta to aggressively pursue the development of its
lead program, entrectiniband continue the development of the rest of its precision
medicine oncology pipeline. Actual results could differ from those
projected in any forward-looking statements due to numerous factors.
Such factors include, among others, the potential for receiving positive
clinical trial data; the inherent uncertainties associated with
developing new products or technologies and operating as a development
stage company; regulatory developments in the United States and foreign
countries; Ignyta's ability to develop, complete clinical trials for,
obtain approvals for and commercialize any of its product candidates;
changes in Ignyta's plans to develop and commercialize its product
candidates; Ignyta's ability to raise any additional funding it will
need to continue to pursue its business and product development plans;
Ignyta's ability to obtain and maintain intellectual property protection
for its product candidates; the loss of key scientific or management
personnel; competition in the industry in which Ignyta operates; and
market conditions. These forward-looking statements are made as of the
date of this press release, and Ignyta assumes no obligation to update
the forward-looking statements, or to update the reasons why actual
results could differ from those projected in the forward-looking
statements. Investors should consult all of the information set forth
herein and should also refer to the risk factor disclosure set forth in
the reports and other documents the company files with the SEC available
at www.sec.gov,
including without limitation Ignyta's Annual Report on Form 10-K for the
year ended December 31, 2015 and subsequent Quarterly Report on Form
10-Q.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160630005994/en/
Contacts:
Ignyta, Inc.
Jacob Chacko, M.D.
CFO
858-255-5959
jc@ignyta.com
Source: Ignyta, Inc.
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