Auxilium Pharmaceuticals secured a two-year revolving line of credit for working capital from Silicon Valley Bank. With $30 million committed at initial closing, the financing includes an accordion feature, which could secure the company an additional $10 million on the parties’ mutual agreement.
The new funds come as Auxilium anticipates approval of Xiaflex™, which is under FDA review for the treatment of Dupuytren’s contracture, a condition that affect s the connective tissue that lies beneath the skin in the palm of the hand. The review date has been set for September 19.
Xiaflex is also in Phase IIb development for the treatment of Peyronie’s disease, which manifests as a plaque or hard lump on the penis that can reduce flexibility and cause the penis to bend during erection. Separate Phase II trials with the drug are under way for treating frozen shoulder syndrome.
Auxilium has one marketed product, Testim®, a topical 1% testosterone once-a-day gel for the treatment of hypogonadism. It received FDA approval in October 2002 and since then obtained sanction in Europe and Canada. The company reported Testim sales-related revenues of $125.2 million in 2008, up 31% from 2007. Market estimates for 2008 also suggested the product had cornered some 22.3% of the testosterone gel market.