Sophiris Bio Inc. (NASDAQ: SPHS), a La Jolla, CA-based biopharmaceutical company studying topsalysin (PRX302), a first-in-class pore-forming protein, in late-stage clinical trials for the treatment of patients with urological diseases, entered into a loan and security agreement with Silicon Valley Bank and may borrow up to $10m in two term loans.
On September 12, 2017, the company borrowed $7 million of this amount. Sophiris may, at its discretion, borrow the remaining $3 million subject to the achievement of certain milestones prior to December 31, 2018. The term loans mature on September 1, 2021. In connection with the loan, on September 8, 2017, Sophiris issued to Silicon Valley Bank a warrant to purchase an aggregate of up to 99,526 of the Company’s common shares at an exercise price of $2.11 per share. The warrant will expire on September 8, 2024.
The company plans to utilize the proceeds to fund the manufacturing for Phase 3 clinical trial materials and expect that it will allow the company to extend its cash runway to the middle of 2019 and provide additional financial flexibility as we advance topsalysin through clinical development.
Led by Randall E. Woods, president and CEO, Sophiris is a late-stage, clinical biopharmaceutical company developing topsalysin (PRX302) for the treatment of patients with urological diseases. Topsalysin is in Phase 2 clinical development for the focal treatment of localized prostate cancer as well as Phase 3 clinical development for the treatment of the lower urinary tract symptoms of benign prostatic hyperplasia (BPH). Topsalysin is a potent ablative agent that is selective and targeted in that it is only activated by enzymatically active PSA which is found in high concentrations in the transition zone of the prostate and in and around prostate tumor cells. More than 400 patients have received topsalysin, which continues to appear to be safe and well tolerated.