Candel Therapeutics Enters $130M Term Loan Facility To Advance Lead Product Candidate In Treatment Of Lung Cancer

Candel Therapeutics (CADL) on Tuesday said that it has entered into a five-year, $130 million term loan facility with Trinity Capital (TRIN).

The loan facility comprises four tranches. While the first tranche of $50 million will be drawn upon closing of the agreement, the second and third tranche totaling $50 million will be available to draw on the achievement of certain milestones, and the fourth tranche of $30 million will be available at the lender’s discretion, the company said. The loan facility has a five-year term with an interest-only period of 36 months, extendable for an additional 12 months upon achievement of a certain commercial milestone.

Proceeds from the loan will be used to refinance certain loan and security agreements, as working capital, and to fund general corporate purposes. The company also said it intends to use the proceeds towards the initiation of a pivotal phase 3 clinical trial of its lead candidate CAN-2409 in non-small cell lung cancer in the second quarter of 2026.

Candel Therapeutics shares traded 7% lower on Tuesday morning. On Stocktwits, retail sentiment around CADL stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

Candel CFO Charles Schoch said that the strategic financing, in addition to the company’s cash and cash equivalents of $87.2 million as of September 30, strengthens the company’s balance sheet and is also expected to support the company through CAN-2409’s potential launch in early localized prostate cancer and into commercialization.

The company plans to submit an application to the U.S. Food and Drug Administration (FDA) for the approval of CAN-2409 for prostate cancer in the fourth quarter of 2026.

CADL stock is down by 31% this year. 

Read also: Novavax Major Shareholder Calls For Sale Of Company To Larger Pharma Entity

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