2nd Sep 2019 11:39
(Alliance News) - Novel antibiotics-focused biopharmaceutical company Motif Bio PLC said Monday it has agreed with Hercules Capital Inc to postpone the next amortisation date for its loan and security agreement.
The amortisation date has been delayed to October 1 from September 1, meaning that the payment for September will be interest only.
Motif said that Hercules made this change to help Motif Bio manage its cash position, as it advances its pipeline expansion strategy and prepares for an upcoming meeting with the US Food & Drug Administration.
Motif Bio was initially issued a USD20.0 million debt financing facility by Hercules in November 2017 to fund pre-commercialisation activities for the launch of its iclaprim antibiotic.
In February this year, the agreement was amended, requiring Motif Bio to immediately pay USD7.0 million.
"We are well prepared for the meeting with the FDA on September 19 to discuss our proposed clinical trial for iclaprim. In addition, we are actively pursuing options to broaden our pipeline as we work to build shareholder value. We appreciate the continued support and flexibility of Hercules and the confidence that they have in our team to deliver on our strategic goals," said Chief Executive Officer Graham Lumsden.
Shares in Motif Bio were down 3.5% at 2.46 pence on Monday in London.
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