Candel Therapeutics announced it has entered into a five-year, $130 million term loan facility with Trinity Capital Inc., providing the clinical-stage biopharmaceutical company with non-dilutive capital to advance its lead immunotherapy candidate CAN-2409 through pivotal trials and toward potential commercialization.
The loan facility consists of four tranches, with the first tranche of $50 million drawn upon closing. The second and third tranches totaling $50 million in aggregate are available subject to achieving certain regulatory, clinical and operational milestones, while the fourth tranche of $30 million is available at the lender's discretion. Interest is payable at a fixed or floating rate at the company's option, initially set at 10.25% per annum.
Strategic Portfolio Focus
Paul Peter Tak, M.D., Ph.D., FMedSci, highlighted the company's strategic portfolio prioritization decisions alongside the financing. "We decided to completely focus our resources and capital for CAN-2409 on early localized prostate cancer and NSCLC, reinforcing our commitment to advancing breakthrough therapies for patients in two of the largest oncology indications, while delivering sustainable value to shareholders," Tak stated.
The company will seek externally funded partnerships for the clinical development of CAN-2409 in pancreatic ductal adenocarcinoma (PDAC), despite having compelling phase 2a data and receiving Orphan Designation from the EMA for this indication.
Clinical Development Timeline
The funding will enable initiation of a pivotal phase 3 clinical trial of CAN-2409 in non-small cell lung cancer in Q2 2026, while preparing for expected submission of a Biologics License Application for CAN-2409 in prostate cancer in the fourth quarter of 2026.
Charles Schoch, CFO of Candel Therapeutics, commented that the strategic financing, combined with the company's cash and cash equivalents of $87.2 million as of September 30, 2025, "significantly strengthens our balance sheet, positioning the Company for the initiation of a pivotal phase 3 clinical trial of CAN-2409 in NSCLC in Q2'26, and supporting the Company through its potential launch in early localized prostate cancer and into commercialization."
CAN-2409 Development Status
CAN-2409 (aglatimagene besadenovec) is the lead product candidate from Candel's adenovirus platform. The company recently completed successful phase 2a clinical trials of CAN-2409 in NSCLC and PDAC, and a pivotal, placebo-controlled, phase 3 clinical trial in localized prostate cancer, conducted under a Special Protocol Assessment agreed with the FDA.
The FDA has granted multiple regulatory designations to CAN-2409, including Regenerative Medicine Advanced Therapy Designation for the treatment of newly diagnosed localized prostate cancer in patients with intermediate-to-high-risk disease, Fast Track Designation in NSCLC and prostate cancer, and both Fast Track Designation and Orphan Drug Designation for the treatment of PDAC.
Additional Pipeline Development
Based on positive interim data for multiple injections of CAN-3110 in recurrent glioblastoma from the ongoing phase 1b clinical trial funded by the Break Through Cancer foundation, Candel will conduct enabling work for the design of a small randomized controlled phase 2 clinical trial in this indication within the current budget.
CAN-3110 (linoserpaturev) is the lead product candidate from the HSV platform and is currently in an ongoing phase 1b clinical trial in recurrent high-grade glioma. Initial results were published in Nature and Science Translational Medicine, and CAN-3110 received Fast Track Designation and Orphan Drug Designation from the FDA.
Use of Proceeds
Proceeds from the facility will be used to refinance existing debt, fund general corporate purposes, initiate the pivotal phase 3 clinical trial of CAN-2409 in NSCLC, complete critical launch readiness and pre-commercialization activities, and fund potential commercial launch upon FDA approval.
Rob Lake, Senior Managing Director of Life Sciences at Trinity Capital, stated, "We believe Candel's strong clinical data and innovative approach positions them well to make a real impact for patients facing prostate cancer and NSCLC - conditions with large commercial opportunities and a continued unmet need."
