Palette Life Sciences, a fully integrated life sciences company headquartered in Sweden and dedicated to improving patient outcomes, has entered into a debt financing facility of up to $ 40 million with the UK branch of Silicon Valley Bank.
Non-dilutive capital provides additional financial flexibility to support business and product development activities across its product continuum.
Under the credit facility, Palette Life Sciences may borrow up to $ 40 million in three tranches subject to the achievement of certain regulatory and commercial milestones and other specified conditions.
Earlier this year, Palette closed a $ 30 million equity financing. The investment was led by Swedish private investment firm Melker Schörling AB and a global player in oncology. Carnegie Investment Bank acted as financial advisor to the company.
Per Langö, CEO and Director of Palette Life Sciences, said: “Obtaining this non-dilutive credit facility is an important milestone for Palette Life Sciences. This will support the expansion of our global footprint and the development of our portfolio of minimally invasive treatments targeting unmet medical needs in radiotherapy and interventional oncology, urologic / urogynecologic disorders and colorectal conditions. This facility, combined with previous equity financing from Palette Life Sciences, provides sufficient resources to reach our milestones.
Palette Life Sciences’ product portfolio builds on its global rights to Non-animal stabilized hyaluronic acid (NAASHA), a slightly stabilized form of hyaluronic acid, as a fundamental platform for its products for oncology, pediatric and incontinence patients worldwide. NASHA has been shown to be safe and effective and has been used for over 20 years in over 50 million medical procedures worldwide. Licensed by Palette from Galderma, NASHA’s exclusive attributes make it ideal for a wide range of medical uses.
Palette Life Sciences’ flagship product, Barrigel, is made from NASHA. Barrigel is an injectable biodegradable material that separates the prostate from the rectum to protect it during radiation therapy for prostate cancer. Barrigel is under development for future market introduction in the United States, Japan and Latin America, and has been approved for use in the EU and Australia.
James Leech, Vice President of Strategy and Corporate Development at Palette Life Sciences, said, “This debt financing provides Palette Life Sciences with tremendous flexibility as we continue to grow our revenue generation and footprint. geographic location, including the sale of our exciting organ spacer product, Barrigel. The team can focus 100% of its resources on critical business and operational activities across the enterprise. “
This debt financing illustrates Silicon Valley Bank’s unique position as a key partner of Palette Life Sciences and the broader life sciences industry in growth financing.
Ian Murchie, UK branch manager of Silicon Valley Bank, added: “This is an important moment for Palette Life Sciences as it continues to expand its product portfolio and geographic footprint. We are delighted to support the company to help bring its exciting offering to more patients requiring better outcomes in urologic and urogynecologic disorders, colorectal conditions, radiation therapy, and interventional oncology procedures. “