SPPI - Spectrum inks debt financing deal after regulatory setback for cancer therapy

• Hours after an FDA advisory panel rejected the company’s lung cancer medication poziotinib, Spectrum Pharmaceuticals ( NASDAQ: SPPI ) announced a five-year debt financing agreement on Friday to secure a term loan worth up to $65M.
• The company said that its existing cash resources and the funding from units run by asset manager SLR Capital Partners will allow it to launch its recently FDA-approved medication Rolvedon and support its operations through 2024.
• “This capital commitment immediately strengthens our balance sheet and is anticipated to provide the additional resources necessary for a successful launch of ROLVEDON,” Chief Executive Tom Riga noted.
• The loan will be available in four tranches, including a $30M loan accessed upon closing on September 21 as the first tranche. The remaining tranches will provide $35M subject to the achievement of certain regulatory and financial milestones.
• SPPI shares continue to trade ~23% lower pre-market on the regulatory setback to cancer medication.
• Last week, SPPI announced the FDA approval of Rolvedon injection as a treatment for chemotherapy-induced neutropenia.

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