Oncorus, Inc. (Nasdaq: ONCR), a viral immunotherapies company
focused on driving innovation to transform outcomes for cancer
patients, today announced that it has entered into a loan and
security agreement with K2 HealthVentures (K2HV), a healthcare
focused specialty finance company. Also today, Oncorus announced
plans to relocate all its operations to its facility in Andover,
Massachusetts in the fourth quarter of 2022, to allow research,
process development and Good Manufacturing Practice (GMP)-compliant
manufacturing to occur all in one facility. As a result of the term
loan facility and operations relocation, as well as other
initiatives to increase operational efficiency, Oncorus now expects
its cash, cash equivalents and investments to fund its capital
expenditures and operating expenses into early 2024.
The term loan facility provides Oncorus with up to $45 million
available in multiple tranches upon the achievement of certain
time-based, clinical and regulatory milestones with the initial
tranche of $20 million funded at closing. Oncorus intends to use
the proceeds of the initial tranche of the loan facility to
complete the buildout of its Andover facility, and to continue the
advancement of its pipeline of next generation viral
immunotherapies for cancer and lipid nanoparticle (LNP)
technologies, including the filing of an investigational new drug
application (IND) for its intravenously administered vRNA/LNP
product candidate, ONCR-021, planned for mid-2023.
“Access to this additional capital from our partners at K2HV
provides us with resources to aggressively pursue our strategic
operational and manufacturing priorities, including the completion
of construction of our manufacturing facility in Andover. This
facility will play an integral role in helping us to rapidly
advance our next generation viral immunotherapies for cancer
patients derived from our HSV and selectively self-amplifying viral
RNA (vRNA) platforms,” said Ted Ashburn, M.D., Ph.D., President and
Chief Executive Officer of Oncorus. “Coupled with this additional
capital comes our decision to move all operations to our Andover
facility by the fourth quarter of this year, providing us with
increased synergies for our continued rapid growth and innovation,
while extending our current cash runway into 2024. We are
incredibly pleased to partner with the K2HV team and value their
significant experience supporting successful biotechnology
companies.”
“We are excited to partner with Oncorus as they continue to
build out their state-of-the-art manufacturing infrastructure and
advance their dual-platform pipeline of product candidates
targeting cancers with significant unmet need,” added Anup Arora,
Founding Managing Director & Chief Investment Officer at K2HV.
“This financing is in line with our strategy of investing in
innovative life sciences companies whose goals are to help improve
outcomes for patients. We look forward to working with the Oncorus
team and supporting their vision.”
“The move to our Andover facility marks a significant turning
point for Oncorus as we continue to work towards becoming a fully
integrated leader in viral immunotherapies for cancer and LNP
technologies,” said Stephen W. Harbin, Chief Operating Officer and
Chief of Staff of Oncorus. “By bringing our research, process
development and GMP manufacturing teams to the same facility, we
believe that we will be better positioned for rapid success while
also providing an opportunity for strong collaboration and
efficiency as we collectively work to achieve our milestones. The
continued investment in manufacturing and building out our in-house
LNP capabilities reflects our commitment to innovation and the
value of our infrastructure.”
Further information with respect to the loan and security
agreement will be set forth in a Current Report on Form 8-K to be
filed by Oncorus with the Securities and Exchange Commission on
April 5, 2022.
About Oncorus
At Oncorus, we are focused on driving innovation to deliver
next-generation viral immunotherapies to transform outcomes for
cancer patients. We are advancing a portfolio of intratumorally
(iTu) and intravenously (IV) administered viral immunotherapies for
multiple indications with significant unmet need based on our
Herpes Simplex Virus (HSV) and selectively self-amplifying viral
RNA (vRNA) Immunotherapy Platforms.
Designed to deliver next-generation viral immunotherapy impact,
our HSV Platform improves upon key characteristics of this
therapeutic class to enhance systemic activity. Our lead HSV
program, ONCR-177, is designed to be directly administered into a
tumor, resulting in high local concentrations of the therapeutic
agent and its five encoded transgenes, as well as low systemic
exposure to the therapy, which could limit systemic toxicities. Our
pioneering selectively self-amplifying vRNA Immunotherapy Platform
involves a highly innovative, novel combination of RNA and
oncolytic virus-based modalities designed to realize the potential
of RNA medicines for cancer. Our lead IV-administered selectively
self-amplifying vRNA Immunotherapy clinical candidates encapsulated
in LNPs, ONCR-021 and ONCR-788, are both currently in IND-enabling
studies.
Please visit www.oncorus.com to learn more.
About K2 HealthVentures
K2 HealthVentures is an alternative investment firm focused on
providing flexible, long-term financing solutions to innovative
private and public companies in the life sciences and healthcare
industries. The investment team comprises collaborative,
experienced professionals with diverse backgrounds in finance and
operations, as well as deep domain knowledge across various
healthcare sectors. A uniquely flexible, permanent capital
structure enables the firm to provide creative, adaptive financing
solutions and meet the evolving capital needs of its portfolio
companies as they grow. K2HV is driven by dual goals of Profit and
Purpose—aiming to fuel the growth of innovative companies that will
ultimately improve the lives of patients and giving a percentage of
investment profits back to underserved areas in healthcare.
www.k2hv.com
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended, including, without limitation, implied and
express statements regarding Oncorus’ business plans and
objectives, including the anticipated impact of the term loan and
the facility consolidation on Oncorus’ balance sheet, expected cash
runway, the clinical development of Oncorus’ product candidates, as
well as the product candidates’ therapeutic potential and clinical
benefits, the impact of and timeline associated with Oncorus’
planned facility consolidation and the expansion and development of
Oncorus’ manufacturing facility and Oncorus’ expectations regarding
the use of proceeds from the loan facility. The words “may,”
“might,” “will,” “could,” “would,” “should,” “expect,” “plan,”
“anticipate,” “intend,” “believe,” “expect,” “estimate,” “seek,”
“predict,” “future,” “project,” “potential,” “continue,” “target”
and similar words or expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. Any forward-looking
statements in this press release are based on management's current
expectations and beliefs and are subject to a number of risks,
uncertainties and important factors that may cause actual events or
results to differ materially from those expressed or implied by any
forward-looking statements contained in this press release,
including, without limitation, risks associated with: Oncorus’
ability to successfully demonstrate the safety, tolerability and
efficacy of ONCR-177, ONCR-021, ONCR-788 and ONCR-GBM and obtain
regulatory approval thereof; the impact of COVID-19 on Oncorus’
operations and the timing and anticipated results of its ongoing
and planned clinical trials; Oncorus’ ability to obtain the
requisite components for its product candidates manufactured in
accordance with regulatory requirements; Oncorus’ planned facility
consolidation and the expansion of Oncorus’ in-house manufacturing
capabilities; the adequacy of Oncorus’ existing capital resources
and availability of financing on commercially reasonable terms; the
accuracy of the Oncorus’ estimates regarding expenses, future
revenue, capital requirements and needs for additional financing;
and Oncorus’ ability to obtain, maintain and protect its
intellectual property. These and other risks and uncertainties are
described in greater detail in the section entitled "Risk Factors"
in Oncorus’ Annual Report on Form 10-K for the year ended December
31, 2021, filed with the Securities and Exchange Commission on
March 9, 2022, as well as discussions of potential risks,
uncertainties, and other important factors in the other filings
that Oncorus makes with the Securities and Exchange Commission from
time to time. These documents are available under the “SEC filings”
page of the Investors section of Oncorus’ website at
http://investors.oncorus.com. Any forward-looking statements
represent Oncorus’ views only as of the date of this press release
and should not be relied upon as representing its views as of any
subsequent date. Oncorus explicitly disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
No representations or warranties (expressed or implied) are made
about the accuracy of any such forward-looking
statements. Investor
Contact:Stern Investor Relations Julie
SeidelJulie.seidel@sternir.com
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