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SAN DIEGO - Inhibrx Biosciences, Inc. (NASDAQ:INBX), a clinical-stage biopharmaceutical company with a current market capitalization of $205.7 million, has secured a loan and security agreement with Oxford Finance LLC for a credit facility of up to $150 million. The agreement, announced today, is intended to provide financial flexibility to support the company's ongoing clinical programs. According to InvestingPro analysis, while the company maintains a strong current ratio of 4.7x, it has been rapidly burning through cash, making this financing crucial for its operations.
The credit facility, which closed today, initially provides Inhibrx with a $100 million term loan. The company has the option to request an additional $50 million, subject to the discretion of the lenders. The loan has an interest-only payment period extending until March 2028. This financing comes at a critical time, as InvestingPro data shows the stock has experienced a significant 14% decline over the past week, though it maintains an overall GOOD financial health score.
As part of the financing deal, Inhibrx has issued warrants for the purchase of 140,741 shares of its common stock to the lenders. The warrants are priced at $14.21 per share, which corresponds to 2% of the initial term loan's value. Additional warrants may be issued if further funding is provided by the lenders.
Inhibrx's Chief Financial Officer, Kelly Deck, remarked on the strategic benefits of the agreement, stating it allows for flexibility following anticipated data readouts later this year for their INBRX-109 and INBRX-106 programs. Christopher Herr, Senior Managing Director at Oxford, expressed confidence in the clinical promise of these programs and Oxford's commitment to supporting Inhibrx's pipeline development.
Inhibrx focuses on developing a broad pipeline of novel biologic therapeutic candidates, employing protein engineering to address complex target and disease biology. The company's current clinical pipeline includes ozekibart (INBRX-109) and INBRX-106, both of which are expected to have key data readouts in 2025.
Oxford Finance LLC is a specialty finance firm that provides senior secured loans to companies across various sectors, including life sciences and healthcare. They have a history of over 20 years in delivering flexible financing solutions.
The financial details of the credit facility come from a press release issued by Inhibrx Biosciences and statements within it regarding the company's future are forward-looking and subject to inherent risks and uncertainties. For investors seeking deeper insights, InvestingPro offers a comprehensive research report on INBX, including detailed analysis of its financial health, valuation metrics, and growth prospects, along with 7 additional key ProTips that could impact your investment decision.
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