Princeton-based CytoSorbents Corp. recently entered into a new $20 million credit facility with Avenue Capital Group.
The critical care immunotherapy company, which is noted for its blood purification technology, said the agreement, which has an initial term of three years, provides up to $20 million in total term loan capital, including an initial tranche of $15 million, with immediate availability of $10 million and an additional $5 million with the timely acceptance by U.S. Food & Drug Administration of the company’s planned De Novo application for DrugSorb-ATR and certain liquidity requirements. A second tranche of $5 million would be available in the second half of 2025 with FDA marketing clearance for DrugSorb-ATM to help support an anticipated launch of the therapy in the U.S.
“We are pleased to enter into this relationship with Avenue Capital Group to strengthen our financial position, expand our working capital and to enable us to confidently pursue our regulatory and commercialization objectives,” Kathleen Bloch, chief financial officer of CytoSorbents, said.
As an FDA Breakthrough Device, DrugSorb-ATR aims to reduce serious bleeding complications in patients undergoing coronary artery bypass graft surgery on the blockbuster blood-thinning drug Brilinta (ticagrelor, AstraZeneca) — a major unmet medical need.
“We have followed the CytoSorbents story for many years and all of the exciting work the company is doing to help save lives in critical care and cardiac surgery. We are pleased to now partner with CytoSorbents to support the international growth of CytoSorb and other products, and importantly help fund the U.S. and Canadian initiatives with DrugSorb-ATR,” Chad Norman, senior portfolio manager at Avenue Capital Group, said.
Many of us unfortunately know family, friends and colleagues on blood thinners and the high bleeding risk they have, should they need surgery. We see a great opportunity to be part of a solution to address this major problem.”
Armentum Partners LLC served as financial adviser to the company on the transaction. Proceeds from the facility are intended to provide non-dilutive working capital to support the company’s ongoing global CytoSorb franchise in critical care and cardiac surgery that generated $32.2 million in trailing 12-month sales as of March 31, planned marketing applications to U.S. Food & Drug Administration and Health Canada for DrugSor-ATR and initial launch and commercialization preparations if approved, and refinancing of existing Bridge Bank debt.
