San Diego’s Ignyta Inc. has secured $42 million in loan from Silicon Valley Bank and Oxford Finance.
Under the loan facility, Ignyta received $32 million up front (all of which was used to pay the company’s prior loan with Silicon Valley) and a conditional option to receive an additional $10 million. The second tranche of $10 million may be drawn down by Ignyta at any time from April 7, 2017 to August 31, 2017, provided that Ignyta has satisfied the deal’s requirements.
"This loan facility strengthens our balance sheet, enabling us to aggressively pursue the development of our lead program, entrectinib, and continue the development of the rest of our precision medicine oncology pipeline," said Dr. Jacob Chacko, CFO of Ignyta, in a statement.
Ignyta, a drugmaker developing cancer therapeutics, has been making lots of changes this year.
The company recently dropped multiple less-promising drug programs from its pipeline. Then in May, Ignyta raised $57.5 million from a public offering.
The new funds were meant to fund R&D for entrectinib.