Citius Oncology Inc (Nasdaq:CTOR), a specialty biopharmaceutical company focused on the development and commercialisation of novel targeted oncology therapies, announced on Tuesday that it has entered into a senior secured term loan credit facility with Avenue Venture Opportunities Fund II, L.P., a fund of US-based Avenue Capital Group.

The new facility provides for up to USD25m in capital to support the ongoing commercialisation of LYMPHIR (denileukin diftitox-cxdl), approved by the US Food and Drug Administration (FDA) for the treatment of adult patients with relapsed or refractory Stage I-III cutaneous T-cell lymphoma (CTCL) after at least one prior systemic therapy.

Citius Oncology has also entered into a definitive agreement for the immediate exercise of certain outstanding warrants, with expected gross proceeds to the company of approximately USD11.5m.

The company intends to use the net proceeds from the financings primarily to fund ongoing LYMPHIR commercialisation efforts such as sales force expansion, market access initiatives, medical affairs activities, and manufacturing supply chain support, with the remainder to be used for working capital and general corporate purposes.