Elevation Oncology secures $50 million loan facility with K2 HealthVentures
- The initial installment supports the exclusive license of EO-3021 (SYSA1801) outside of Greater China of the CSPC pharmaceutical group and execution of the company’s pipeline
NEW YORK, July 28, 2022 /PRNewswire/ — Elevation Oncology, Inc. (Nasdaq: ELEV), a clinical-stage biopharmaceutical company focused on developing precision oncology products for patients with genomically defined cancers, today announced that it has been awarded a $50 million senior secured loan facility from funds managed by K2 HealthVentures, a leading healthcare-focused investment firm. The initial installation product will mainly support the exclusive license of EO-3021 (SYSA1801) apart from Greater China of CSPC Pharmaceutical Group and the execution of the Company’s pipeline.
“This funding supports the expansion of our clinical oncology pipeline with an exciting new opportunity in precision oncology, furthering our mission to bring important new medicines to the patients who need them,” said Joseph Ferra, chief financial officer of Elevation Oncology. “We are delighted to partner with K2 HealthVentures, a leading partner known for its strategic investments in promising healthcare companies and assets, and believe this transaction demonstrates the significant potential of seribantumab and EO-3021. . »
Austin SherwindtCEO of K2 HealthVentures, said, “We are excited to partner with Elevation Oncology and provide the company with increased financial flexibility to expand and diversify its portfolio, expand its business potential, and address significant unmet needs in oncology. power of precision oncology and the long-term potential of Elevation Oncology’s pipeline development approach, and we look forward to continuing our partnership with the company as it advances its clinical-stage assets and expands still its portfolio of precision drugs. »
The facility provides Elevation Oncology with up to $50 million of borrowing capacity in two tranches, with a first tranche of $30 million immediately available. A second installment, consisting of up to $20 millionwill be available to Elevation Oncology in the future, subject to mutual agreement between Elevation Oncology and K2 HealthVentures.
Elevation Oncology plans to use initial proceeds from the facility primarily to fund a one-time upfront payment of $27 million to license EO-3021 (SYSA1801) from CSPC Pharmaceutical Group. Elevation Oncology plans to use any future proceeds from the facility to support the continued development of EO-3021 and seribantumab, for further pipeline expansion, and for general corporate purposes. Following the licensing of EO-3021 and the initial tranche of the loan facility, Elevation Oncology expects its cash, cash equivalents and marketable securities to fund ongoing operations until in 2024.
About Elevation Oncology, Inc.
Elevation Oncology is founded on the belief that every cancer patient deserves to know what is driving the growth of their disease and to have access to treatments that can stop it. Our goal is to make genomic testing actionable by selectively developing drugs to inhibit specific alterations that have been identified as drivers of tumor growth. Together with our peers, we are working toward a future in which each tumor’s unique genomic test result can be combined with purpose-built precision medicine to enable an individualized treatment plan for each patient. Our most advanced candidate, seribantumab, is intended to inhibit tumor growth induced by NRG1 fusions and is currently being evaluated in the Phase 2 CRESTONE study for patients with solid tumors of any origin who have an NRG1 gene fusion . Details about CRESTONE are available at www.NRG1fusion.com. Our other product candidate, EO-3021, is a clinical-stage differentiated antibody-drug conjugate that targets Claudin18.2 and is currently in development for the treatment of genomically defined solid tumors. For more information, visit www.ElevationOncology.com.
About K2 Health Ventures
K2 HealthVentures is an alternative investment company focused on providing flexible, long-term financing solutions to innovative private and public companies in the life sciences and healthcare sectors. The investment team is made up of collaborative and experienced professionals with a diverse background in finance and operations, as well as deep domain knowledge in various healthcare sectors. A unique and flexible permanent capital structure enables the company to provide creative and adaptive financing solutions and to meet the ever-changing capital needs of its portfolio companies as they grow. K2HV is driven by the dual goals of profit and purpose – aiming to fuel the growth of innovative companies that will ultimately improve the lives of patients and return a percentage of investment profits to underserved areas in healthcare. For more information, visit www.k2hv.com.
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, expectations regarding use by Elevation Oncology proceeds from the loan facility, the anticipated preclinical and clinical development activities, the potential benefits of Elevation Oncology’s product candidates and Elevation Oncology’s expectations regarding its cash flow. All statements other than statements of historical fact are statements that could be considered forward-looking statements. These forward-looking statements may be accompanied by words such as “aim”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “anticipate”, “objective”, “intend of’, ‘could’, ‘could’, ‘plans’, ‘potential’, ‘possible’, ‘shall’, ‘would’ and other words and terms of similar meaning. Although Elevation Oncology believes that the expectations reflected in these forward-looking statements are reasonable, Elevation Oncology cannot guarantee future events, results, actions, levels of activity, performance or achievements, and the timing and results of biotechnology development. and potential regulatory approval are inherently uncertain. Forward-looking statements are subject to risks and uncertainties that could cause Elevation Oncology’s actual operations or results to differ materially from those expressed in any forward-looking statement, including risks and uncertainties related to Elevation Oncology’s ability to advance its product candidates, the timing and results of preclinical studies and clinical trials, the approvals and commercialization of product candidates, the receipt and timing of potential regulatory designations, the impact of the COVID-19 pandemic on Elevation Oncology’s business, Elevation Oncology’s ability to fund development activities and achieve development goals, Elevation Oncology’s ability to protect intellectual property, Elevation Oncology’s ability to establish and maintain collaborations with third parties and other risks and uncertainties described under the under the heading “Risk Factors” in documents that Elevation Oncology files from time to time with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release, and Elevation Oncology undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
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SOURCE Elevation Oncology