Protox Therapeutics Inc., a Canadian developer of treatment of urological diseases, has sealed a $15 million loan agreement with Oxford Finance. The company, which is backed by Warburg Pincus, will use the money for its late stage drug development program for the treatment of Benign Prostate Hyperplasia. Last fall, Protox inked a commitment from Warburg Pincus to put up to $35 million into the company Protox competed a $10 million first tranche of that financing in November. Protox is traded on the Toronto Stock Exchange.
Protox Therapeutics Inc. (“Protox”, TSX: PRX), a developer of innovative products for the treatment of urological diseases, today announced that it has entered into a US $15 million loan agreement with Oxford Finance LLC. Proceeds will be used to finance Protox’s late stage drug development program for the treatment of Benign Prostate Hyperplasia (BPH).
“As we advance the development of PRX302 for the treatment of BPH, the proceeds of this loan provide Protox with additional financing at an attractive cost of capital,” said Lars Ekman, Executive Chairman and President of Protox. “It is a supplement to our overall financing strategy in that it dovetails with our investment agreement with Warburg Pincus.”
“Oxford is pleased to provide financing to Protox to support the development of PRX302, which has yielded promising results from clinical trials,” said Christopher A. Herr, managing director for Oxford Finance. “We appreciate the opportunity to further the progress of this innovative drug.”
In September 2010, Protox entered into an investment agreement with Warburg Pincus, a leading global private equity firm, under which Warburg Pincus committed to invest up to Cdn $35 million in Protox. A first tranche of $10 million was completed in November 2010.
About Protox Protox Therapeutics is a developer of innovative products for the treatment of urological diseases. Protox’s lead program, PRX302 (PORxin), achieved positive results from its Phase 2b placebo controlled trial called TRIUMPH, to treat benign prostatic hyperplasia (BPH or enlarged prostate). Protox has partnered with Kissei Pharmaceuticals for the development and commercialization of PRX302 in Japan. For more information, please visit www.protoxtherapuetics.com.
About Oxford Finance LLC Oxford Finance is a specialty finance firm providing senior secured loans to public and private life science and healthcare services companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets. In recent years, Oxford has originated over $1.5 billion in loans, with lines of credit ranging from $500 thousand to $40 million. Oxford is headquartered in Alexandria, Virginia, with additional offices in California, Illinois, Massachusetts and North Carolina. For more information visit www.oxfordfinance.com.
Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on Protox’ current beliefs as well as assumptions made by and information currently available to Protox and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by Protox in its public securities filings; actual events may differ materially from current expectations. Protox disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.