BioLineRx (BLRX) Enters into $40 Million Non-Dilutive Debt Financing Agreement with Kreos Capital

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BioLineRx Ltd. (NASDAQ: BLRX) today announced that the company has entered into a $40 million non-dilutive secured debt financing agreement with Kreos Capital, a leading provider of innovative and flexible corporate debt solutions. capital-intensive, pan-European and Israeli. – growing companies in the technology and health sectors.

Under the terms of the agreement, the first tranche of $10 million was made available to BioLineRx upon execution of the definitive agreement, subject to customary closing conditions. The remaining $30 million will be made available in two additional tranches subject to the achievement of predefined milestones. Slices are available for collection at BioLineRx’s discretion at various times through October 1, 2024.

Each installment has a predefined interest payment period, followed by an amortization period of the loan principal of up to 36 months after the interest-only period. Interest-only periods are subject to extension based on certain predefined milestones. The borrowings for the financing will bear interest at a fixed rate of 9.5% per annum (~11.0%, including the associated treasury costs). In addition, Kreos will be entitled to medium to high single-digit royalties on sales of Motixafortide, up to a predefined cap. No warrants were issued by BioLineRx in connection with this financing.

BioLineRx intends to use available funds from this agreement, along with available cash, to support an aggressive commercial launch of Motixafortide in the mobilization of autologous stem cells for patients with multiple myeloma, if approved. while continuing to evaluate marketing strategies in the United States. BioLineRx recently submitted a New Drug Application (NDA) to the United States Food and Drug Administration (FDA) seeking marketing approval for this underserved hematology/oncology indication.

“We are very pleased to have the support of Kreos Capital, a well-known and highly regarded healthcare investor, as we prepare to transition to a commercial company next year,” said Philip Serlin, President and CEO of BioLineRx. “Kreos has been a very supportive partner in the past, having assisted with critical debt financing in 2018 as we further increased our stake and commitment to the development of Motixafortide. Having successfully met this obligation, we are fortunate to working again with a team that already knows our company and our prospecting program very well.”

“Access to this non-dilutive financing, on terms that we believe are favorable to the company, allows us to prepare for a robust launch of Motixafortide, if approved, while continuing to evaluate different commercialization alternatives in the States. This will help ensure that many myeloma patients across the United States have broad access to this highly effective new mobilization agent as quickly as possible,” concluded Serlin.

“At Kreos, we have established a track record of investing in therapeutic companies that drive true innovation, and we believe that Motixafortide, if approved, has the potential to quickly become the standard of care in stem cell mobilization. for the benefit of providers, patients and payers,” said Chris Church, Principal at Kreos. “We look forward to working closely with BioLineRx as it strives to achieve its regulatory and commercial goals post-launch. “

As of June 30, 2022, BioLineRx reported cash and cash equivalents of $43.2 million.


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