Tesaro Inc. entered a $500 million debt facility to help fund its oncology research.
Proceeds will be used to strengthen its PARP-inhibitor franchise in ovarian cancer, expand the development of Zejula in other tumor types, and advance its immuno-oncology portfolio with combination-based approaches.
The loans, which mature in December 2024, will be funded in two tranches. The tranche A loan of $300 million will be funded by around Dec. 6. Tesaro has an option to acquire the tranche B loan of up to $200 million between June 30, 2018, and Dec. 20, 2018. The tranche A loan will bear interest at a rate equal to LIBOR plus 8% and tranche B at LIBOR plus 7.5%.
Zejula on Monday received marketing authorization from the European Commission to be used to treat ovarian cancer as a maintenance therapy. The U.S. Food and Drug Administration approved it in March. Tesaro plans to launch it in the U.K. and Germany in December, followed by other European countries in 2018.