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.