By Lisa Kerner
Charlotte, N.C., Nov. 6 - PDL BioPharma, Inc. agreed to provide up to $70 million of debt financing with a five-year term to Durata Therapeutics, Inc., $25 million of which was funded on Oct. 31.
Durata will receive $15 million of funding upon U.S. regulatory approval of its intravenous antibiotic product candidate, dalbavancin.
The remaining $30 million will be funded within nine months after regulatory approval of dalbavancin, at Durata's election, according to a company news release.
PDL will receive interest on the principal amount outstanding and a security interest in substantially all of Durata's assets.
"This deal with Durata marks the fourth transaction we have closed in recent weeks and, in doing so, we believe that we are securing measurable value for PDL and our stockholders," said president and chief executive officer John P. McLaughlin.
Durata is a Morristown, N.J.-based pharmaceutical company focused on the development and commercialization of novel therapeutics for patients with infectious diseases and acute illnesses.
PDL is an Incline Village, Nev., biopharmaceutical company.
| Borrower: | Durata Therapeutics, Inc.
|
| Amount: | $70 million
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| Term: | Five years
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| Lender: | PDL BioPharma, Inc.
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| Settlement dates: | Oct. 31 for $25 million; $45 million based on regulatory approval of dalbavancin
|
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