Endocyte CFO Mike Sherman said the credit line gives his company financial flexibility as it tries to advance a series of patented cancer treatments.
Unlike a venture capital equity deal, in which investors buy shares of a fast-growing private company's stock, a credit line doesn't dilute shares of existing stockholders. But Endocyte will have to repay any money it borrows, plus interest. Terms of the credit agreement were not disclosed.
Endocyte plans to use the borrowed money to continue to develop and conduct clinical studies of drugs intended to treat ovarian, lung and kidney cancers, as well as a diagnostic imaging agent.
Widely considered one of Indiana's most promising life science firms, Endocyte raised $15 million from venture equity investors in March 2007; it raised $23 million from venture investors in December 2004.
Several of Endocyte's investors injected capital they secured from the BioCrossroads Indiana Future Fund.