Gensia Pharmaceuticals Inc. of San Diego said Monday it hasentered into an $8 million loan agreement arranged by MeierMitchell & Co. of San Francisco. Under terms of the agreement,the company is not disclosing the loan partners.
The loan, $6.8 million of which was funded immediately, issecured by certain assets of the company's Gensia LaboratoriesLtd. subsidiary. The $1.2 million balance will be held in escrowto be re-leased on achievement of certain financial milestones.
The loan is to be repaid over 48 months and will provide fundsfor general corporate purposes. Gensia's Arasine anti-ischemiadrug is in Phase III testing for bypass surgery, and its heart-stimulating agent arbutamine is now in Phase II clinicals as analternative to exercise in stress tests.
The company (NASDAQ:GNSA) said it typically uses loans toacquire new equipment.
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