Oncothyreon Inc., a biotechnology company focused on the development of innovative therapeutic products for the treatment of cancer, yesterday announced it has entered into an aggregate $12.5 million secured loan facility from GE Capital, Healthcare Financial Services.
The initial term loan was for $5.0 million, which was funded February 8, 2011. Oncothyreon has the option to draw the remaining $7.5 million any time before November 1, 2011, subject to the achievement of certain clinical milestones and other customary conditions.
The company said it will use the funds to support clinical development activities, focusing on the phase II trials of PX-866, Oncothyreon’s irreversible inhibitor of the PI-3 kinase pathway.
Oncothyreon also said it expects the funding, in addition to existing cash and short-term investments, to financially carry the company’s operations through the second half of 2010.
“This loan facility will provide us with significant financial flexibility to carry out our planned development of both PX-866 and ONT-10, while we await the results of the START trial of Stimuvax(R),” Robert L. Kirkman, M.D., president and CEO of Oncothyreon stated in the press release.
Kirkman said the company has already commenced two of four planned phase I/II and phase II trials of PX-866 and that the company remains on track to file an Investigational New Drug application with the FDA for ONT-10 in the second half of 2011.
For more information, visit www.oncothyreon.com