Gastrointestinal treatments company Tranzyme Pharma (NASDAQ:TZYM) has secured $9.3 million in financing — enough to carry the company through the third quarter.
Durham, North Carolina-based Tranzyme said that the loan came from an amendment and restatement of its existing debt financing facility with Oxford Finance and Horizon Technology Finance Corporation (NASDAQ:HRZN). Tranzyme will use a portion of the proceeds to pay off a portion of its existing debt, leaving the company with $20 million in outstanding debt. Terms of the amended notes provide that Tranzyme pay interest only through February 2013.

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Tranzyme, which completed an initial public stock offering last April, does not yet have any U.S. Food and Administration-approved drugs. The companies lead drug candidate is ulimorelin, a compound in phase 3 clinical trials for treatment of postoperative ilius, a condition in which the GI tract stops functioning normally following intestinal surgery. Another compound, TZP-102, is being studied as a treatment for diabetic gastroparesis, an upper gastrointestinal disorder. That compound is in phase 2b clinical trials.
Tranzyme CEO Vipin Garg said in a statement that the company expects to file a new drug application for ulimorelin in the fourth quarter. Top-line phase 2b data for TZP-102 is expected by the end of the year.
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