Oxford Finance LLC, a specialty finance firm that provides senior debt to life sciences and healthcare services companies, and Silicon Valley Bank announced the closing of a $20 million credit facility with Castle Biosciences, Inc., a privately held, commercial-stage molecular diagnostics company dedicated to improving cancer treatment decisions. The facility is comprised of a $15 million senior secured term loan and a $5 million line of credit.
Castle Biosciences currently offers prognostic tests for patients with underserved cancers including cutaneous melanoma (DecisionDx®-Melanoma), an aggressive form of skin cancer, and uveal melanoma (DecisionDx®-UM and DecisionDx®-PRAME), a rare aggressive eye cancer. The company's tests are performed in its CAP-accredited, CLIA-certified clinical laboratory in Phoenix, Arizona.
Proceeds from the credit facility are being used to provide additional working capital as Castle accelerates marketing support and new product development to further help patients and their physicians make the best possible treatment and follow-up care decisions based on the molecular signatures of their tumors.
"Oxford is pleased to provide financing to Castle Biosciences, which has developed and clinically validated prognostic tests enabling improved treatment decisions and outcomes for patients with uveal and cutaneous melanomas" said Christopher A. Herr, senior managing director at Oxford Finance. "We look forward to supporting the Company's continued growth and development of new tests for other underserved cancers."
"Silicon Valley Bank is pleased to continue its longstanding relationship with Castle Biosciences in support of its development efforts and commercial growth endeavors," said Anthony Flores, director of Silicon Valley Bank's Southwest Biopharma and Diagnostics practice. "Our goal remains to bring the right financing, connections and services to bear for Castle as they work to improve diagnostic outcomes, and ultimately the broader treatment paradigm for cancer patients."
"Castle Biosciences is focused on delivering high value tests to improve cancer treatment. This expanded capital facility will be used to accelerate growth of our cutaneous melanoma test, DecisionDx®-Melanoma, and support our near-term pipeline," said Derek Maetzold, president and chief executive officer of Castle Biosciences. "Through this relationship with Oxford and Silicon Valley Bank we will be able to expand the reach of our innovative molecular diagnostic tests, and help more physicians and patients make improved disease management decisions."