Inhibrx Announces Amended Loan Agreement with Oxford
San Diego, Calif., Feb. 22, 2022 /PRNewswire/ — Inhibrx, Inc. (Nasdaq: INBX), a biotechnology company with four clinical programs in development and a strong emerging pipeline, today announced that it has changed its loan and guarantee agreement with Oxford Finance LLC (“Oxford”).
“This amendment further strengthens our balance sheet in a volatile stock market and provides us with additional non-dilutive capital and flexibility as we continue to advance our pipeline and prepare for eventual commercialization,” said Kelly Deck, chief financial officer of ‘Inhibrx. “Oxford have been a supportive partner throughout our evolution and transformation as a business and we are delighted to extend this relationship.”
The amendment provides four additional tranches of term loans for up to an additional $130 million as follows:
– Principal amount of $40 million financed at the closing of the amendment;
-$30 million, funded during the initiation of the Part 4 Phase 1 clinical trial of INBRX-105, our tetravalent conditional agonist PD-L1x4-1BB;
-$30 million, funded upon receipt of positive Phase 1 clinical trial data for INBRX-101, our AAT-Fc fusion protein for the treatment of alpha-1 antitrypsin deficiency, or AATD; and
-30 million dollars, financed during the launch of a potential clinical trial allowing the registration of INBRX-101.
The terms of the three existing tranches under the loan agreement have been amended to align with the four additional tranches. The term loans outstanding will mature in January 2027 and will bear interest at 8.19%, whichever is greater of (i) the 30-day US dollar LIBOR rate published in the Wall Street Journal or (ii) 0.11 %. The repayment schedule provides for interest-only payments through March 2025 with a potential 12-month extension as defined in the agreement. A final payment of 9.0% of the total principal amount will be due to Oxford.
Pursuant to the amendment, Inhibrx paid a one-time amendment fee of $1.1 million, which is the amount accrued for the final payment on the existing tranches at the time of the amendment. Inhibrx has also issued warrants to Oxford to purchase 40,000 common shares of Inhibrx at an exercise price of $45.00 per share. All other terms remain in effect.
About Inhibrx, Inc.
Inhibrx is a clinical-stage biotechnology company focused on developing a broad portfolio of novel biologic therapeutic candidates in oncology and orphan diseases. Inhibrx uses various protein engineering methods to address the specific requirements of complex target and disease biology, including its proprietary sdAb platform. Inhibrx has collaborations with 2seventy bio (formerly bluebird bio), Bristol-Myers Squibb, and Chiesi, among others. For more information, please visit www.inhibrx.com.
Inhibrx cautions you that statements in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on Inhibrx’s current beliefs and expectations. These forward-looking statements include, but are not limited to, statements regarding: the future clinical development of Inhibrx therapeutic candidates, including statements regarding the timing of future data readouts and initiation of registration-enabled studies, assessments and judgments regarding Inhibrx’s cash position and balance sheet, and statements and judgments regarding its partnership and relationship with Oxford. Actual results may differ from those presented in this press release due to risks and uncertainties inherent in the business of Inhibrx, including, without limitation, risks and uncertainties regarding: launch, timing, progress and the results of its preclinical studies and clinical trials, and its research and development programs; its ability to advance therapeutic candidates into and successfully complete clinical trials; its interpretation of initial, interim or preliminary data from its clinical trials, including interpretations regarding disease control and disease response; the timing or likelihood of regulatory filings and approvals; the successful commercialization of its therapeutic candidates, if approved; the pricing, coverage and reimbursement of its therapeutic candidates, if approved; its ability to use its technology platform to generate and advance additional therapeutic candidates; the implementation of its business model and its strategic plans for its commercial and therapeutic candidates; its ability to successfully manufacture therapeutic candidates for clinical trials and commercial use, if approved; its ability to enter into contracts with third-party suppliers and manufacturers and their ability to operate adequately; the extent of the protection it is able to establish and maintain for the intellectual property rights covering its therapeutic candidates; its ability to enter into strategic partnerships and the potential benefits of such partnerships; its estimates of expenses, capital requirements and additional financing needs and financial performance; its expectations regarding the impact of the COVID-19 pandemic on its business; and other risks described from time to time in the “Risk Factors” section of its filings with the United States Securities and Exchange Commission or the SEC, including those described in its Annual Report on Form 10- K for the fiscal year ended December 31, 2020 as filed with the SEC on March 12, 2021, together with its quarterly reports on Form 10-Q, and supplemented from time to time by its current reports on Form 8-K. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Inhibrx undertakes no obligation to update these statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investor and media contact:
Kelly Deck, CFO