Celladon Corporation CLDN, -0.93% a clinical-stage biotechnology company applying its leadership position in the field of gene therapy and calcium dysregulation, today announced that it has entered into a credit facility with Hercules Technology Growth Capital, Inc. HTGC, -0.59% and its affiliate lenders. The credit facility provides for up to $25 million of loans.
Celladon drew a first tranche of $10 million at the closing of the new credit facility. A second tranche of up to $15 million can be drawn, at Celladon’s option, prior to May 31, 2015. This option may be exercised if data from the ongoing Phase 2b trial of MYDICAR supports the continued development of MYDICAR for its Breakthrough Therapy indication to either a Phase III study or registration for approval, as reasonably determined by Celladon’s senior management and board of directors. MYDICAR has received Breakthrough Therapy designation from the FDA for reducing hospitalization for heart failure in Nab-negative NYHA class III or class IV heart failure patients who are not in immediate need of a left ventricular assist device or heart transplant. Celladon expects to report results from the Phase 2b trial in April 2015.
Celladon plans to use the proceeds from the credit facility to provide additional funding for the development of MYDICAR, for other development programs in its pipeline, and for general corporate purposes. Further information with respect to the loan arrangement with Hercules will be contained in a Current Report on Form 8-K to be filed by August 6, 2014 by Celladon with the Securities and Exchange Commission.