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BOSTON–(BUSINESS WIRE)–Spectrum Pharmaceuticals, Inc. (NasdaqGS: SPPI) (“Spectrum” or the “Company”), a biopharmaceutical company specializing in novel and targeted oncology therapies, today announced that it has entered into a debt five years with investment affiliates managed by SLR Capital Partners, LLC (SLR) for a term loan facility of up to $65 million. The Company believes that this transaction, combined with Spectrum’s existing cash balance, provides sufficient capital to optimize the commercial launch of ROLVEDON™ injection (eflapegrastim-xnst), which has received Food and Drug Administration approval ( FDA) of the United States on September 9, 2022, as well as to finance Spectrum’s operations until 2024.
“We are pleased to announce this financing agreement and to partner with SLR, an experienced healthcare and life sciences lender and investor. This capital commitment immediately strengthens our balance sheet and should provide the additional resources necessary for the successful launch of ROLVEDON,” said Tom Riga, President and CEO of Spectrum Pharmaceuticals. “We expect this transaction to further extend our cash trail through 2024, providing operational flexibility as we transition to a commercial-stage company.”
Under the terms of the agreement, Spectrum will have access to debt financing of up to $65 million, divided into four tranches, the first of which was a $30 million loan drawn at closing on September 21, 2022. The 35 million remaining dollars will be paid available in three additional tranches subject to the achievement of predefined regulatory and financial milestones. Slices may be withdrawn at Spectrum’s discretion at various times until November 15, 2023.
The maturity date of the loan facility is September 1, 2027 and payments consist of 36 monthly payments of interest only, followed by 24 monthly payments of principal and accrued interest. The Company has the option to extend the interest-only period for an additional year if certain financial milestones are met. In connection with the financing, and with each loan advance, Spectrum will issue warrants to the lenders in connection with the financing to purchase common stock of the Company in an amount equal to 1.00% of the amount of the loan from the lender applicable divided by an exercise price calculated on the applicable financing date.
Armentum Partners acted as financial advisor to the Company in connection with the transaction. Additional information regarding the transaction may be found in the Company’s current and future periodic filings with the Securities and Exchange Commission (SEC).
About Spectrum Pharmaceuticals, Inc.
Spectrum Pharmaceuticals, Inc. is a biopharmaceutical company focused on the acquisition, development and commercialization of novel and targeted oncology therapies. Spectrum has a strong track record of successfully executing across the entire biopharmaceutical business model, from in-licensing and acquiring differentiated drugs, clinical development of new assets, successfully obtaining regulatory approvals and commercialization. in a competitive healthcare market. Spectrum has a late-stage pipeline with new assets that address unmet needs. This pipeline has the potential to transform the business in the near future. For more information about Spectrum, please visit www.spirx.com.
Notice Regarding Forward-Looking Statements
Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, as amended to date. These forward-looking statements relate to a variety of topics, including, without limitation, statements relating to Spectrum’s business and its future, including the extension of the Company’s cash trail through 2024; the future availability under SLR’s capital commitment, including the Company’s ability to reach certain milestones required to extend the interest-only period and to require additional financing under the loan; the success of the Company’s commercial launch of ROLVEDON and the sufficiency of SLR’s capital commitment to support the Company’s planned commercialization efforts; the potential therapeutic benefits of ROLVEDON; the potential market opportunity for ROLVEDON; the potential of the Company’s pipeline to transform the Company in the near future; and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of Spectrum’s management and are subject to important risks and uncertainties that could cause actual results to differ materially from what may be expressed or implied. in these forward-looking statements. research statements. Risks that could cause actual results to differ include, but are not limited to, the possibility that ROLVEDON may not be more effective, safer, or more cost-effective than competing drugs; our reliance on third parties for clinical trials, manufacturing, distribution and quality control; the possibility that our existing and new applications with the FDA and other regulatory agencies may not receive approval in a timely manner or at all; the possibility that our efforts to acquire or in-license and develop additional drug candidates will fail and other risks which are described in more detail in the Company’s filings with the SEC. The Company does not intend to update these forward-looking statements and expressly disclaims any obligation to update the information contained in this press release, except as required by law. For a more in-depth discussion of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Spectrum’s business generally, see the risk information in the annual report. on Spectrum’s Form 10-K for the fiscal year ended December 31, 2021, as well as in subsequent reports on Forms 10-Q and 8-K and other filings with the SEC by Spectrum.
SPECTRUM PHARMACEUTICALS, INC.® is a registered trademark of Spectrum Pharmaceuticals, Inc and its subsidiaries. REDEFINING CANCER CARE™ and ROLVEDON™ are the logos and trademarks of Spectrum Pharmaceuticals owned by Spectrum Pharmaceuticals, Inc. All other marks are the property of their respective owners.
© 2022 Spectrum Pharmaceuticals, Inc. All rights reserved
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