Halozyme Therapeutics Inc. announced Monday that it has entered into a $150 million credit agreement to fund the start of its Phase 3 study in pancreatic cancer.
The credit agreement was secured by future royalties of Halozyme’s ENHANZE products, received only from the company’s collaborations with Roche and Baxalta.
The deal, expected to close this month, will be facilitated through investment funds managed by Pharmakon Advisors and Athyrium Capital Management, according to a Halozyme press release. Under the financing structure, Halozyme will form a wholly-owned subsidiary, Halozyme Royalty LLC, which will borrow the $150 million.
The financing comes shortly after Halozyme received an upfront payment of $25 million from the recently announced licensing and collaboration agreement with global drugmaker Eli Lilly.
Halozyme’s ENHANZE technology is a delivery platform that aids in the dispersion and absorption of injected therapeutic drugs. For drugmakers, this technology can work in tandem with molecules to allow for more rapid delivery of injectable medicine.