Cerus (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.
