Candel Therapeutics Secures $130 Million Term Loan Facility From Trinity Capital To Support Clinical Development And Growth Initiatives

Candel Therapeutics, Inc., a clinical-stage biopharmaceutical company developing multimodal biological immunotherapies to help patients fight cancer, has announced that it has entered into a five-year, $130 million term loan facility with Trinity Capital Inc. The agreement provides access to funding across four tranches. The first tranche of $50 million was drawn at closing, while the second and third tranches, totaling $50 million, may be accessed upon achieving certain regulatory, clinical, and operational milestones outlined in the agreement. The fourth tranche of $30 million will be available at Trinity Capital’s discretion. 

The loan carries an initial annual interest rate of 10.25%, with the Company having the option to choose between a fixed or floating rate. The facility includes a five-year term and a 36-month interest-only period, which may be extended by an additional 12 months if a specific commercial milestone is achieved. The agreement also includes customary representations, warranties, covenants, and events of default. Charles Schoch, Chief Financial Officer of Candel Therapeutics, stated that this strategic financing, combined with the company’s cash and cash equivalents of $87.2 million as of September 30, 2025, strengthens its balance sheet and supports the initiation of a pivotal Phase 3 clinical trial of CAN-2409 in non-small cell lung cancer (NSCLC) in the second quarter of 2026. 

He added that the financing will also help advance preparations for the potential commercial launch of CAN-2409 in early localized prostate cancer and further commercialization efforts. Schoch emphasized that the transaction reflects Candel’s disciplined approach to capital allocation and long-term financial planning. Rob Lake, Senior Managing Director of Life Sciences at Trinity Capital, commented that Candel’s innovative approach and strong clinical data position the company to make a meaningful difference for patients with prostate cancer and NSCLC—two major oncology indications with significant unmet needs. 

He noted that Trinity’s investment demonstrates its commitment to supporting life sciences companies that are developing breakthrough therapies for patients worldwide. Paul Peter Tak, M.D., Ph.D., FMedSci, added that alongside this financing, Candel has refined its strategic priorities by focusing its internal resources on advancing CAN-2409 for early localized prostate cancer and NSCLC. The company plans to seek externally funded partnerships for the continued development of CAN-2409 in pancreatic ductal adenocarcinoma (PDAC), despite having encouraging Phase 2a data, completed enabling work for a Phase 2b/3 study, a positive Scientific Advisory Board review, and Orphan Designation from the European Medicines Agency. 

Tak emphasized that this prioritization reinforces Candel’s commitment to advancing its most promising programs in major oncology indications while ensuring sustainable value creation for shareholders. Additionally, based on positive interim results from multiple injections of CAN-3110 in recurrent glioblastoma observed in the ongoing Phase 1b trial funded by the Break Through Cancer foundation, the company plans to conduct further enabling work to design a small randomized controlled Phase 2 clinical trial within its current budget.

Proceeds from the loan facility will be used primarily to refinance Candel’s existing loan and support working capital, general corporate purposes, and the initiation of the Phase 3 CAN-2409 trial in NSCLC. The funding will also help prepare for the anticipated submission of a Biologics License Application (BLA) for CAN-2409 in prostate cancer in the fourth quarter of 2026. Any future tranches will further support pre-commercialization activities, medical affairs, and potential commercial launch preparations following a possible U.S. Food and Drug Administration (FDA) approval. Jefferies LLC served as Candel Therapeutics’ exclusive financial advisor for the transaction.