Sierra Oncology Obtains Debt Facility from Silicon Valley Bank to Acquire and Advance Momelotinib

Sierra Oncology (NASDAQ:SRRA) has announced it has obtained a debt facility from Silicon Valley Bank to help advance its drug development programs.

As quoted in the press release:

“This credit facility provides us with the option to access minimally dilutive capital rapidly and incrementally as needed to advance momelotinib, while helping to ensure we remain well capitalized to prosecute our robust development program for SRA737 and commence the clinical program for SRA141,” said Dr. Nick Glover, President and CEO of Sierra Oncology. “With this facility, combined with our cash position of approximately $125 million as at June 30, 2018, we believe we have sufficient resources to deliver on key milestones across all three programs.”

Under the terms of the debt facility with Silicon Valley Bank, Sierra can borrow up to $15 million in three $5 milliontranches, the first of which was drawn by the company on loan closing. The subsequent tranches may be drawn upon the achievement of certain business and clinical milestones associated with the advancement of momelotinib. An additional $25 million is potentially available in an uncommitted incremental facility subject to lender approval.

Click here to read the full press release.