Inhibrx gets four additional term loan tranches totaling $130 million

By Marisa Wong

Los Angeles, Feb. 22 – Inhibrx, Inc. announced it amended its loan and security agreement with Oxford Finance LLC to provide for four additional tranches of term loans for up to an additional $130 million.

The add-on tranches consist of the following:

• $40 million principal amount funded upon the closing of the amendment;

• $30 million, funded upon initiation of Part 4 of the Phase 1 clinical trial of INBRX-105, the company’s PD-L1x4-1BB tetravalent conditional agonist;

• $30 million, funded upon the receipt of positive topline data from the Phase 1 clinical trial of INBRX-101, the company’s AAT-Fc fusion protein for the treatment of Alpha-1 antitrypsin deficiency, or AATD; and

• $30 million, funded upon the initiation of a potential registration-enabling clinical trial of INBRX-101.

The terms of the three existing tranches under the loan agreement were modified to align with the four additional tranches.

The outstanding term loans will mature in January 2027 and bear interest at 819 basis points over the greater of (i) 30-day U.S. dollar Libor or (ii) 0.11%.

The repayment schedule provides for interest-only payments until March 2025 with a potential 12-month extension. A final payment of 9% of the total principal amount will be due to Oxford.

For the amendment, Inhibrx paid a one-time amendment fee of $1.1 million, which is equal to the amount accreted for the final payment on the existing tranches at the time of the amendment. Inhibrx also issued to Oxford warrants to purchase 40,000 shares of its common stock at a strike price of $45.00 per share.

All other terms remain outstanding.

“This amendment further strengthens our balance sheet in a volatile equity market and provides us with additional non-dilutive capital and flexibility as we continue to advance our pipeline and prepare for potential commercialization,” Kelly Deck, chief financial officer of Inhibrx, said in the press release.

Inhibrx is a clinical-stage biotechnology company focused on developing a broad pipeline of novel biologic therapeutic candidates in oncology and orphan diseases. The company is based in San Diego.

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