ADC Therapeutics: $115 MILLION CONVERTIBLE CREDIT FACILITY WITH DEERFIELD
Lausanne, Switzerland, May 1, 2020 – ADC Therapeutics SA, a late clinical-stage oncology-focused biotechnology company pioneering the development and commercialization of highly potent antibody drug conjugates (ADCs) for patients suffering from hematological malignancies and solid tumors, today announced that it entered into a $115 million Convertible Credit Facility (the “Convertible Credit Facility”) with funds affiliated with Deerfield Management Company, L.P. (collectively, “Deerfield”).
Chris Martin, Chief Executive Officer of ADC Therapeutics, said, “We are delighted to add Deerfield as one of our long-term financial partners as we prepare for the submission of a Biologics License Application for Lonca to the U.S. Food and Drug Administration. To that end, we are continuing to build out our commercial organization for the launch of Lonca, if approved, in mid-2021 while advancing our diversified pipeline of novel ADCs for patients with hematological cancers and solid tumors.”
Under the Convertible Credit Facility, Deerfield agreed to extend senior secured convertible term loans (the “convertible loans”) to the Company in two separate disbursements, each subject to satisfaction of certain conditions. Deerfield agreed to extend (i) an initial disbursement of convertible loans to the Company in the amount of $65.0 million upon completion of an initial public offering by the Company and satisfaction of certain other conditions and (ii) a subsequent disbursement of convertible loans to the Company in the amount of $50.0 million upon receipt of regulatory approval for Lonca and satisfaction of certain other conditions.