Selecta Biosciences, Inc. (NASDAQ: SELB), a clinical-stage
biotechnology company focused on unlocking the full potential of
biologic therapies based on its immune tolerance platform,
ImmTORTM, today announced that it has entered into a debt financing
facility for up to $35 million with Oxford Finance and Silicon
Valley Bank (SVB). Proceeds from the financing will be used to
retire $12.6 million of existing debt, advance Selecta’s ImmTOR
pipeline in gene therapy and autoimmune diseases, and for selected
business development activities.
“This partnership with Oxford Finance and SVB bolsters our
financial position and extends our cash runway as we look to
accelerate the development of our ImmTOR pipeline in gene therapy
and autoimmune diseases,” said Brad Dahms, Chief Financial Officer
of Selecta. “We are pleased to continue our relationship with SVB
and are excited to partner with Oxford Finance on this facility at
such an important time for Selecta.”
“We are thrilled to support Selecta’s efforts to continue
development of its ImmTOR platform,” said Christopher A. Herr,
Senior Managing Director at Oxford Finance. “The potential for
ImmTOR in gene therapy and autoimmune diseases align with our
strategy of funding innovative life sciences companies”.
“Selecta is driving important advancements in biologic therapies
through its ImmTOR platform,” said Ryan Roller, Director of Life
Science and Healthcare at Silicon Valley Bank. “We are pleased to
expand our relationship with the Selecta team and have the
opportunity to support the Company’s next phase of growth.”
Under the terms of the financing agreement, Oxford Finance and
Silicon Valley Bank will provide Selecta with up to $35 million of
borrowing capacity available in two tranches: $25 million at
closing, and an additional $10 million available through September
30, 2021 upon the achievement of two development milestones:
enrollment of the first patient in the Phase 1 clinical trial of
Selecta’s gene therapy program in methylmalonic acidemia, and the
enrollment of the first patient in each of the two Phase 3 clinical
trials of SEL-212 in chronic refractory gout. The facility will
require Selecta to make only interest payments through at least
April 1, 2022. If the development milestones are met, the
interest-only period will be extended to October 1, 2022. The
entire facility matures on August 1, 2025. There are no financial
covenants in the agreement.
About Selecta Biosciences, Inc. Selecta
Biosciences, Inc. is a clinical-stage biotechnology company focused
on unlocking the full potential of biologic therapies based on its
pioneering immune tolerance platform (ImmTOR™). Selecta is
committed to utilizing ImmTOR to potentially improve the efficacy
of biologics, enable re-dosing of life-saving gene therapy, and
create novel immunotherapies for autoimmune diseases. Selecta’s
late-stage product candidate, SEL-212, is designed to be a monthly
treatment for chronic refractory gout, a debilitating rare disease
with a significant unmet medical need. SEL-212 consists of a
combination of its ImmTOR platform co-administered with
pegadricase, an enzyme designed to treat patients with symptomatic
gout, refractory to standard uric acid lowering treatment.
Selecta’s proprietary gene therapy product candidates are in
development for certain rare inborn errors of metabolism and
incorporate our ImmTOR platform with the goal of addressing
barriers to repeat administration. In addition to our own pipeline
of core discovery and clinical candidates, Selecta has established
collaborative relationships with leading biopharmaceutical
companies, including Asklepios BioPharmaceutical (AskBio) and
Sarepta Therapeutics for gene therapy, and Swedish Orphan Biovitrum
AB (Sobi™) for SEL-212. Selecta is based in Watertown,
Massachusetts. For more information, please visit
www.selectabio.com.
About Oxford Finance LLCOxford Finance is a
specialty finance firm providing senior secured loans to public and
private life sciences and healthcare services companies worldwide.
For over 20 years, Oxford has delivered flexible financing
solutions to its clients, enabling these companies to maximize
their equity by leveraging their assets. In recent years, Oxford
has originated over $6 billion in loans, with lines of credit
ranging from $5 million to $150 million. Oxford is headquartered in
Alexandria, Va., with additional offices in San Diego, Calif.; Palo
Alto, Calif.; and the greater Boston and New York City areas. For
more information, visit https://oxfordfinance.com/.
About Silicon Valley BankFor more than 35
years, Silicon Valley Bank (SVB) has helped innovative companies
and their investors move bold ideas forward, fast. SVB provides
targeted financial services and expertise through its offices in
innovation centers around the world. With commercial, international
and private banking services, SVB helps address the unique needs of
innovators. Learn more at svb.com.
Forward-Looking Statements Any statements in
this press release about the future expectations, plans and
prospects of Selecta Biosciences, Inc. (“the company”),
including without limitation, the company’s plans to use the
proceeds from the debt financing facilities, the company’s cash
runway, the ability of the company to develop its product
candidates, the potential of the ImmTOR platform in both gene
therapy and autoimmune disease indications and generally, the
company’s ability to achieve various development milestones, the
company’s plans to access the additional $10 million available
under the debt financing facility upon the achievement of various
milestones, the timing, enrollment and progress of the company’s
clinical trial programs, and the timing of various interest
payments, and the company’s ability to grow its strategic
partnerships, the sufficiency of the company’s cash, cash
equivalents and short-term investments, and other statements
containing the words “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “hypothesize,” “intend,” “may,” “plan,”
“potential,” “predict,” “project,” “should,” “target,” “would,” and
similar expressions, constitute forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of
1995. Actual results may differ materially from those indicated by
such forward-looking statements as a result of various important
factors, including, but not limited to, the following: the
company’s inability to maintain its existing or future
collaborations, licenses or contractual relationships, the
availability of funding sufficient for its foreseeable and
unforeseeable operating expenses and capital expenditure
requirements, substantial fluctuation in the price of its common
stock including stock market fluctuations that occur as a result of
the COVID-19 outbreak, and other important factors discussed in the
“Risk Factors” section of the company’s most recent Quarterly
Report on Form 10-Q, and in other filings that the company makes
with the Securities and Exchange Commission. In addition, any
forward-looking statements included in this press release represent
the company’s views only as of the date of its publication and
should not be relied upon as representing its views as of any
subsequent date. The company specifically disclaims any intention
to update any forward-looking statements included in this press
release.
For Investors: Lee M. Stern Solebury Trout
+1-646-378-2922 lstern@soleburytrout.com
For Media: Meredith Sosulski,
Ph.D.LifeSci Communications,
LLC+1-929-469-3851msosulski@lifescicomms.com
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