SCYNEXIS secured a $60 million term loan facility with Hercules Capital and Silicon Valley Bank (SVB). The capital strengthens SCYNEXIS’ balance sheet ahead of the anticipated commercial launch of Brexafemme, the expected trade name for ibrexafungerp, an oral antifungal product candidate for the treatment of vaginal yeast infections, which is under regulatory review by the U.S. Food and Drug Administration (FDA) with a PDUFA target action date of June 1, 2021. This non-dilutive financing further extends SCYNEXIS’ projected cash runway into 2023, based on current operating plans.
“This term loan facility significantly strengthens our balance sheet ahead of our first commercial launch,” said Marco Taglietti, M.D., President and Chief Executive Officer of SCYNEXIS. “Following our transformative $85M equity financing in December 2020, we have successfully pursued a variety of sources of non-dilutive capital, including a $10M upfront licensing payment from Hansoh Pharma, monetization of $4.2M of our 2020 New Jersey NOLs and, now, this loan facility, with $20M at closing and another $10M anticipated this quarter upon FDA approval of Brexafemme. This non-dilutive cash, on top of the $93M available at the end of 2020, provides the resources to fund not only this year’s anticipated commercial launch of Brexafemme for vaginal yeast infections, but also the continued advancement of our ibrexafungerp pipeline in recurrent vulvovaginal candidiasis (VVC) and in life-threatening fungal infections in the hospital setting, including the CDC-designated urgent threat, Candida auris.”
Bryan Jadot, Senior Managing Director and Life Sciences Group Head for Hercules Capital, added, “Hercules is proud to partner with SCYNEXIS ahead of the potential Brexafemme launch, and to support its work to advance the first new antifungal class in over 20 years. The substantial capital commitment from Hercules aims to facilitate SCYNEXIS’ growth and expansion of ibrexafungerp into other antifungal indications with high unmet need, and reflects our dedication to financing promising life sciences companies.”
“SCYNEXIS is driving important advancements in developing anti-infectives and we are excited to expand our relationship with the SCYNEXIS team to support their next phase of growth,” said Tom Gordon, Managing Director of Life Science and Healthcare at Silicon Valley Bank.
The $60M loan facility is available to SCYNEXIS in four tranches: SCYNEXIS receives the first tranche of $20M as part of the closing of the term loan facility; the second tranche of $10M will be triggered by FDA approval of ibrexafungerp for the treatment of vaginal yeast infections, and will be available through June 30, 2022; the third tranche of $5M will be triggered by the additional achievement of the primary endpoint in the CANDLE study, and will be available through June 30, 2022; and the remaining $25M in the fourth tranche will be available to SCYNEXIS from January 1, 2022 through December 31, 2023 in $5M increments, subject to certain terms and conditions, including in connection with net product revenues for ibrexafungerp over time.
The term loan has a 30-month interest-only period from date of closing, extendable to 36 months upon FDA approval of ibrexafungerp for the treatment of vaginal yeast infections and up to 48 months upon achievement of certain conditions. The maturity date of the loan is on March 3, 2025, but would be automatically extended to May 1, 2025 upon the occurrence of certain conditions set forth in the loan documentation.
Armentum Partners served as the company’s financial advisor in connection with the loan facility.