CytoDyn gets $25M in convertible debt deal to fund license applications, coronavirus trials for leronlimab

CytoDyn Inc (OTCQB:CYDY) announced Wednesday that it has gone through a second non-dilutive convertible debt offering with an institutional investor, delivering $25 million of immediately available capital for the company’s license applications and coronavirus (COVID-19) trials. 

The note has a two-year maturity, bears interest at the rate of 10% annually and is secured by all assets of the company, excluding its intellectual property. The note may be converted into shares of common stock at a price of $10.00 per share. 

The company believes the influx of cash will help grease the runway to complete the biologics licence application (BLA) process for its drug leronlimab around the world. 

READ: CytoDyn wins nod from UK’s MHRA to file BLA for leronlimab as a once a week injection for a HIV combo therapy

“We are very pleased with the institution’s demonstration of confidence and their understanding of leronlimab’s positioning on its regulatory trajectory,” CEO Nader Pourhassan said in a statement. “This infusion of capital will enable us to accelerate efforts to file BLAs in Canada and the UK for leronlimab as a combination therapy for HIV patients with one dose (one 350 mg subcutaneous injection) per week.”

Leronlimab is also being evaluated as a possible treatment for the coronavirus.

“We continue to expedite enrollment in CD12 (currently at 260 patients), in addition to now accelerating a COVID-19 trial for long-hauler patients, who have no alternative therapy and are rapidly emerging as a widespread health concern,” Pourhassan said. “We are well-positioned to supply $2 billion worth of leronlimab to treat COVID-19, if emergency use authorization is approved in the next 2-4 months based on anticipated successful CD12 results.”

Leronlimab works by mitigating what is known as the cytokine storm, a hyperactive immune response that can cause inflammation, fatigue and, in severe cases, organ failure.

In addition to its potential as a treatment for the coronavirus, leronlimab has previously been granted Fast Track designation by the Food and Drug Administration as a combination therapy with HAART for HIV-infected patients and as a treatment for metastatic triple-negative breast cancer.

Contact Andrew Kessel at [email protected]

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Story by ProactiveInvestors