Navidea (NYSE:NAVB) is getting a loan of up to $60 million it plans to use to retire debt and spur wider use of its Lymphoseek cancer imaging agent.
The money will come from CRG (formerly Capital Royalty LP), which is providing an initial $50 million term loan with a 6-year time frame. Navidea gets up to $10 million in additional funding, if it chooses, through December 2016, as long as it meets select revenue milestones and other borrowing stipulations.
Dublin, Ohio-based Navidea said it will use the funding to retire all of its debt from Oxford Finance, putting the remaining $18 million toward marketing for Lymphoseek, its FDA-approved cancer imaging agent and other expenses.
Lymphoseek, FDA-approved since 2014, is indicated for sentinel lymph node detection in breast cancer, melanoma, and oral cavity head and neck cancers.
CRG, meanwhile, is developing a growing roster of med tech loan clients.
Ceterix Orthopaedics announced earlier in May that it took out a $35 million term loan with CRG to help move forward its NovoStitch suture passing device for surgeries to repair torn menisces in the knee.
Last October, Astute Medical inked a $30 million loan agreement with CRG, money slated to help it commercialize the FDA-cleared NephroCheck kidney injury test. It can get another $10 million as part of the deal, assuming it hits certain revenue milestones.