Aptevo Therapeutics Extends Cash Runway $20 Million; Retains Term Loan Agreement With MidCap Financial
Published: Sep 29, 2017
SEATTLE, Sept. 28, 2017 (GLOBE NEWSWIRE) -- Aptevo Therapeutics Inc. (Nasdaq:APVO), a biotechnology company focused on developing novel immuno-oncology and hematology therapeutics, today announced that it has amended the terms of a credit agreement initially executed with MidCap Financial Trust in August 2016. The first tranche of this term loan, in the amount of $20 million, was funded in August 2016. The amendment allows Aptevo to retain this $20 million funding tranche, for which repayment was anticipated coincident with the sale transaction of Aptevo’s hyperimmune commercial assets. As part of the amendment, the companies have agreed to eliminate the option for a second tranche of $15 million.
“We are pleased to continue our relationship with MidCap Financial,” said Jeff Lamothe, Chief Financial Officer. “They are a knowledgeable partner who understands the life sciences sector and we appreciate their continued interest in and commitment to our business. Since our inception, we have sought to ensure that Aptevo is solidly capitalized to invest in the opportunities where we see the most potential for long-term value creation for our stockholders – namely by advancing a pipeline of innovative bispecific therapeutic antibodies derived from our proprietary ADAPTIR® platform and continuing to expand market share for our IXINITY® Hemophilia B commercial product. With MidCap’s continued support, we have extended our cash runway to further these goals.”
About Aptevo Therapeutics Inc.
Aptevo Therapeutics Inc. is a clinical-stage biotechnology company focused on novel oncology and hematology therapeutics to meaningfully improve patients’ lives. Aptevo has a commercial product, IXINITY®, approved and marketed in the United States for the treatment of Hemophilia B, and a versatile core technology – the ADAPTIR™ modular protein technology platform capable of generating highly-differentiated bispecific antibodies with unique mechanisms of action to treat cancer or autoimmune diseases. Aptevo has two ADAPTIR antibody candidates currently in clinical development and a broad pipeline of novel investigational-stage bispecific antibody candidates focused in immuno-oncology and autoimmune disease and inflammation. For more information, please visit www.aptevotherapeutics.com.
About MidCap Financial
MidCap Financial is a middle market-focused, specialty finance firm that provides senior debt solutions to businesses across all industries. The firm’s years of experience, strong balance sheet, and flexibility make it a lender of choice for companies across all stages of growth and complexity. MidCap Financial’s debt solutions focus in five areas: (i) General and Healthcare Asset-Based working capital loans collateralized by third-party accounts receivable and other assets, (ii) Leveraged loans to companies backed by private equity sponsors, (iii) Life Sciences loans to VC-backed and public pharmaceutical, biotech, and medical device companies, (iv) Real Estate loans on all types of commercial properties, medical office buildings, various types of senior housing and skilled nursing properties, and (v) Lender Finance term loans or revolvers provided across the consumer and commercial finance sectors. Additional information about MidCap Financial can be found at www.midcapfinancial.com.
Safe Harbor Statement
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, including, without limitation, statements regarding the closing of the anticipated sale of the hyperimmune products to Saol Therapeutics, Aptevo’s use of proceeds from such transaction, Aptevo’s outlook, financial performance or financial condition, Aptevo’s technology and related pipeline, collaboration and partnership opportunities, commercial portfolio, Aptevo’s future growth rates, Aptevo’s ability to timely manufacture its products, and any other statements containing the words “believes,” “expects,” “anticipates,” “intends,” “plans,” “forecasts,” “estimates,” “will” and similar expressions are forward-looking statements. These forward-looking statements are based on Aptevo’s current intentions, beliefs and expectations regarding future events. Aptevo cannot guarantee that any forward-looking statement will be accurate. Investors should realize that if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could differ materially from Aptevo’s expectations. Investors are, therefore, cautioned not to place undue reliance on any forward-looking statement. Any forward-looking statement speaks only as of the date of this press release, and, except as required by law, Aptevo does not undertake to update any forward-looking statement to reflect new information, events or circumstances.
There are a number of important factors that could cause Aptevo’s actual results to differ materially from those indicated by such forward-looking statements, including uncertainties as to the satisfaction of closing conditions with respect to the transaction; closing of the transaction may not occur or may be delayed, either as a result of litigation related to the transaction or otherwise; possible negative effects on Aptevo’s business operations, assets or financial results as a result of the transaction; a deterioration in Aptevo’s business or prospects; the parties may be unable to achieve the anticipated benefits of the transaction; adverse developments in the U.S. or global capital markets, credit markets or economies generally; and changes in regulatory, social and political conditions. Additional risks and factors that may affect results are set forth in Aptevo’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, as filed on March 31, 2017, and its subsequent reports on Form 10-Q and current reports on Form 8-K. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from Aptevo’s expectations in any forward-looking statement.
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Senior Director, Investor Relations and Corporate Communications