Argos Therapeutics, Inc., a biopharmaceutical company focused on the development and commercialization of fully personalized immunotherapies for the treatment of cancer and infectious diseases using its Arcelis™ technology platform, announced that it has entered into a $25 million venture loan led by Horizon Technology Finance Corporation. Argos plans to devote the loan proceeds to the continuing development of AGS-003, the company's lead oncology product candidate, currently being evaluated in the pivotal ADAPT phase 3 clinical trial for the treatment of metastatic renal cell carcinoma (mRCC), and further development of its Arcelis technology platform, including the leasing, build-out and equipping of Argos's planned automated commercial manufacturing facility, and general corporate purposes.
"With this additional capital from Horizon, Argos is well positioned to further advance our development of AGS-003 and our proprietary Arcelis platform, including continuing our plan to build-out an automated manufacturing facility which we believe is critical to the successful commercialization of personalized immunotherapies such as AGS-003," stated Jeff Abbey, president and chief executive officer of Argos.
The loan is available in two tranches of $12.5 million. The initial funding of the first $12.5 million tranche closed on September 29, 2014. The first tranche, which includes an initial interest-only period of two years, is a four-year senior secured term loan that bears interest at a floating coupon rate of one-month LIBOR plus 8.75%. The second tranche of $12.5 million is available for funding upon the completion of enrollment and randomization of patients in the ongoing phase 3 trial of ASG-003. The second tranche, which includes an initial interest-only period of 18 months, is a 42-month senior secured term loan that bears interest at a floating coupon rate of one-month LIBOR plus 8.75%.
"Horizon is pleased to lead this significant loan for Argos, an exciting company with promising treatments for cancer and infectious diseases," stated Gerald A. Michaud, president of Horizon. "With Argos's recent IPO, notable investors, and a pivotal phase 3 clinical trial underway, the company is poised for further success as it works to commercialize personalized immunotherapies."
Argos Therapeutics is a biopharmaceutical company focused on the development and commercialization of fully personalized immunotherapies for the treatment of cancer and infectious diseases using its Arcelis® technology platform. Argos' most advanced product candidate, AGS-003, is being evaluated in the pivotal ADAPT phase 3 clinical trial for the treatment of metastatic renal cell carcinoma (mRCC). The Company is also developing a second Arcelis-based product candidate, AGS-004, for the treatment of HIV, currently being evaluated in a phase 2 clinical trial. For more information about Argos Therapeutics, visit www.argostherapeutics.com.
Horizon Technology Finance Corporation is a business development company that provides secured loans to development-stage companies backed by established venture capital and private equity firms within the technology, life science, healthcare information and services, and clean-tech industries.