Candel Therapeutics Enters into $130 Million Term Loan Facility with Trinity Capital Inc.

Core Viewpoint - Candel Therapeutics has secured a five-year, $130 million term loan facility with Trinity Capital to enhance its financial position and support the initiation of pivotal clinical trials for its lead product candidate, CAN-2409, in non-small cell lung cancer (NSCLC) and localized prostate cancer [1][2][3]. Financial Details - The loan facility consists of four tranches, with an initial draw of $50 million at closing, and an additional $80 million available based on the achievement of specific milestones [2][6]. - The interest rate on the loan is set at 10.25% per annum, with an interest-only period of 36 months, extendable for an additional 12 months upon meeting certain commercial milestones [2]. Strategic Implications - The financing will allow the company to initiate a pivotal phase 3 clinical trial of CAN-2409 in NSCLC in Q2 2026 and prepare for a potential Biologics License Application submission for prostate cancer in Q4 2026 [3][9]. - Candel Therapeutics aims to focus its resources on early localized prostate cancer and NSCLC, while seeking external partnerships for the development of CAN-2409 in pancreatic ductal adenocarcinoma (PDAC) [3][9]. Clinical Development - Candel has completed successful phase 2a clinical trials for CAN-2409 in both NSCLC and PDAC, and is advancing towards a pivotal phase 3 trial for localized prostate cancer [9]. - The company has received multiple designations from the FDA, including Fast Track and Orphan Drug Designation for CAN-2409 in various indications [9]. Company Overview - Candel Therapeutics is a clinical-stage biopharmaceutical company focused on developing multimodal biological immunotherapies to combat cancer, with its lead product candidate being CAN-2409 from its adenovirus platform [8].