Ashleigh Palmer, Provention Bio CEO

Proven­tion Bio takes a $125M loan to ad­vance Eli Lil­ly’s once-re­ject­ed di­a­betes drug

Amidst the on­go­ing biotech mar­ket slow­down, com­pa­nies are try­ing var­i­ous ways to stay afloat. Some are go­ing pub­lic, and some are tak­ing on debt.

The newest en­trant to the bor­row­ers’ club is New Jer­sey-based Proven­tion Bio, which has se­cured a term loan fa­cil­i­ty of up to $125 mil­lion with Her­cules Cap­i­tal.

The fund­ing will be avail­able in five tranch­es, with the first tranche of $25 mil­lion drawn at clos­ing. The com­pa­ny has the op­tion to draw the sec­ond tranche of $40 mil­lion up­on ap­proval of teplizum­ab, sub­ject to cer­tain con­di­tions.

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