Biotech Values

[DewDiligence]

Ardea Biosciences Secures $8M Loan

[This PR came out this morning and is presumably not the cause of the stock’s spike to a 42% gain in the closing minutes today. RDEA also reported its 3Q08 financial results this morning (#msg-33555492).]

http://biz.yahoo.com/bw/081113/20081113005249.html

›Thursday November 13, 8:30 am ET

SAN DIEGO--(BUSINESS WIRE)--Ardea Biosciences, Inc. (Nasdaq: RDEA ) announced today that it entered into an $8.0 million growth capital loan agreement with Oxford Finance Corporation and Silicon Valley Bank. Among its terms, the loan bears interest at 12% per annum over an approximate 3 year period and contains no financial covenants. In connection with the loan, Ardea issued warrants to the lenders entitling them to purchase up to approximately 56,000 shares of common stock over a seven year period.

“We are pleased to have closed this financing under very challenging market conditions on favorable terms,” commented Barry D. Quart, PharmD, Ardea’s president and chief executive officer. “The proceeds from this loan, together with our existing cash reserves, provide greater flexibility in ongoing partnering discussions and allow us to fund operations into the second half of 2009.”

“Ardea Biosciences is focused on treatments for some of our most life-threatening and debilitating diseases, including HIV, gout and cancer,” said J. Alden Philbrick, president and chief executive officer of Oxford Finance Corporation. “Oxford and Silicon Valley Bank appreciate the opportunity to provide capital to further the development of Ardea’s exciting pipeline candidates.”

…About Oxford Finance Corporation

Oxford Finance Corporation, a subsidiary of Sumitomo Corporation, is a specialty finance firm providing senior secured loans to public and private life science companies worldwide. For over 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets. In recent years, Oxford has originated over $1 billion in loans, with lines of credit ranging from $500 thousand to $30 million. Oxford is headquartered in Alexandria, Virginia, with additional offices in California and Massachusetts. For more information, visit www.oxfordfinance.com.

About Silicon Valley Bank

Silicon Valley Bank (SVB) is the premier commercial bank for emerging, growth and mature companies in the technology, life science, venture capital/private equity and premium wine industries. SVB provides a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients’ success. Founded in 1983 and headquartered in Santa Clara, California, the company serves clients around the world through 27 U.S. offices and international operations in China, India, Israel and the United Kingdom. Silicon Valley Bank is a member of global financial services firm SVB Financial Group, with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at www.svb.com.‹