• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Drug Delivery Business

  • Clinical Trials
  • Research & Development
  • Drug-Device Combinations
  • FDA
  • Pharmaceuticals
  • Policy

Cerus inks $40m loan deal with Oxford Finance

August 2, 2017 By Sarah Faulkner

CerusCerus (NSDQ:CERS) said today that it inked a $40 million amended growth capital credit facility with Oxford Finance.

Concord, Calif.-based Cerus received a $30 million loan when it closed the deal, according to the company, and can draw another $10 million contingent upon a specified sales milestone.

“Oxford continues to be an invaluable partner. Their appreciation of our business opportunity and shared belief in our mission to establish Intercept as the standard of care for transfused blood components globally strengthens our relationship,” VP of finance & CFO Kevin Green said in prepared remarks. “The non-dilutive capital and potential access to additional proceeds provides us with financial flexibility to help us execute on our commercial growth strategy, as well as to support key clinical programs.”

“A portion of the proceeds from the initial $30 million loan were used to repay the outstanding term loans of approximately $17.6 million provided under the original agreement with Oxford. The amended facility provides Cerus with not only additional capital but also deferred amortization for 18 to 24 months,” he added.

“We are pleased to extend our collaboration with Cerus in support of its commercial growth initiatives,” Oxford Finance’s senior managing director Christopher Herr said. “Cerus’ commitment to improving patient care, its seasoned management team, and proprietary technology provides us with an attractive lending opportunity.”

In May, Cerus said that it expects a U.S. supply shortage of Fresenius Kabi’s (NYSE:FMS) platelet additive solution will impact blood centers that use PAS to produce Intercept platelets.

The pending shortage is due to “an unanticipated delay” in FDA approval of a plastic component used to manufacture the PAS container. The original component was discontinued by Fresenius Kabi’s supplier, the company reported.

In the U.S., Intercept platelets can be made in a mixture of PAS and plasma on platelets collected using the Amicus apheresis platform.

Fresenius Kabi said it is working with its suppliers and the federal regulatory watchdog to resolve the delay.

In response to the expected impact of the supply disruption, Cerus lowered its product revenue guidance to a range of $38 million to $46 million, down from $43 million to $48 million.

Want to stay on top of DDBN content? Sign up for our e-mail newsletter for a weekly dose of drug-device news.

Filed Under: Drug-Device Combinations, Featured, Funding Roundup, Wall Street Beat Tagged With: Cerus Corporation

IN CASE YOU MISSED IT

  • Abbott will spend $450M to up FreeStyle Libre production in Ireland
  • Better Therapeutics Q2 beats Street as it prepares to submit diabetes therapy for FDA review
  • Study backs Fluidx embolic device for vessel filling
  • Senseonics stock is up as it sticks by revenue guidance
  • Rapid Dose closes first tranche of $5M financing

Primary Sidebar

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Need Drug Delivery Business News in a minute? We Deliver!
Drug Delivery Enewsletters get you caught up on all the mission critical news you need in med tech. Sign up today.

Signup for the newsletter

Footer

Drug Delivery Business News Logo

MassDevice Medical NETWORK

MassDevice
DeviceTalks
Medical Tubing & Extrusion
Medical Design & Outsourcing
MedTech100 Index
Drug Discovery & Development
Pharmaceutical Processing World
Medical Design Sourcing
R&D World

DRUG DELIVERY BUSINESS NEWS

Subscribe to Drug Delivery’s E-Newsletter
Advertise with us
About
Contact us
Privacy
Listen to our Weekly Podcasts
Add us on FacebookFollow us on TwitterConnect with us on LinkedIn

Copyright © 2022 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Advertise | Privacy Policy | RSS