Benzinga | May 14, 2021 03:43PM EDT

Scynexis Raises $60M Via Term Loan Ahead Of Expected Approval Of Vaginal Yeast Infection Treatment

* Scynexis Inc (NASDAQ: SCYX) is taking out a loan to ensure it can hit the ground running for a potential commercial launch of ibrexafungerp for vaginal yeast infections as the PDUFA date of June 1 is just around the corner.

* The company closed terms on a $60 million loan with Hercules Capital and Silicon Valley Bank. Approval of the program is anticipated, after which the oral antifungal will be branded as Brexafemme.

* The loan not only provides resources for the launch in yeast infections but "also the continued advancement of our ibrexafungerp pipeline in recurrent vulvovaginal candidiasis (VVC) and in life-threatening fungal infections in the hospital setting," CEO Marco Taglietti said in a statement.

* Per the agreement, the loan will become available to Scynexis in four tranches, the first of which consists of $20 million and becomes immediately available.

* The second tranche of $10 million will be triggered upon the FDA approval of Brexafemme and be available through June 30, 2022. The third tranche of $5 million will open should the CANDLE VVC study hit its primary endpoint.

* The remaining $25 million will be available in $5 million increments from the beginning of 2022 through the end of 2023, contingent on other conditions.

* The loan is expected to mature in the first quarter of 2025.

* Price Action: SCYX shares are trading 3.68% higher at $7.04 during the market session on the last check Friday.