SCYNEXIS Inc (NASDAQ:SCYX) seems to have ended its most recent rally on October 8, as the company continues to decline in the stock market. During the October 18 trading session, SCYX lost another 0.51% of its share price, on a trade volume of 1.65 million. Currently, the stock is trading at $3.87, as compared to its share price of over $5, at the start of October 6.
The company has been attracting attention, since it announced the results of its phase-2 trials, of oral SCY-078. In addition to this, SCYX has also acquired a term loan from Solar Capital Ltd (NASDAQ:SLRC), worth $15 million. SCY-078 has been developed as a treatment for vulvovaginal candidiasis. During the trial, the drug showed better clinical cure rates and fewer recurrences of the condition. The drug was being compared against oral fluconazole, the current standard care.
The CMO of SCYX, David Angulo, expressed his delight at the positive outcomes and obtaining proof of concept. He also claimed that the company had successfully identified a well tolerated dose, which would target invasive candidiasis. Mr. Angulo was of the view that SCY-078 could potentially become the first drug, in a class of novel antifungal class, for a range of fungal infections, which have unmet medical needs.
In Addition to this, the company has also obtained proceeds of $15 million, through a loan and security agreement, with Solar Capital. The loan would have a 48-month secured term, with the principal amount and accrued interest due on September 30, 2020. The company noted that it currently has a cash position of $58.4 million, as of September 30, 2016, including the loan.
Anthony Storino, the head of life science lending at Solar Capital, expressed his pleasure at the financing partnership with SCYX. He also revealed that SCYNEXIS Inc (NASDAQ:SCYX) planned to use the cash for expanding the pipeline of indications for SCY-078, as well as to advance other development programs. Mr. Storino was of the view that the company had offered them with a unique value proposition, in the area of unmet medical needs.