Spruce Biosciences announced it has entered into a venture debt loan facility for up to $50 million with Avenue Venture Opportunities Fund II, a fund of Avenue Capital Group, providing growth capital as the company advances tralesinidase alfa enzyme replacement therapy (TA-ERT) toward a planned biologics license application for Sanfilippo Syndrome Type B (MPS IIIB).
The 42-month facility includes an initial $15 million tranche expected to fund on or around Jan. 9, 2026, and up to $35 million in additional tranches that would be available subject to certain conditions, including the achievement of regulatory and commercial milestones tied to TA-ERT’s development and anticipated commercial launch.
Spruce said that after drawing the first $15 million, it expects its cash and cash equivalents to support planned operations into 2027, enabling the BLA filing for TA-ERT while also accelerating pre-launch commercial work. The company also reported preliminary cash and cash equivalents of about $48.9 million as of Dec. 31, 2025.
Support: Armentum Partners served as Spruce’s exclusive financial advisor on the transaction.
KEY QUOTES:
“We are pleased to partner with Avenue Capital on a strategic financing agreement with attractive terms that strengthens our financial flexibility. At the drawdown of the initial $15 million tranche, we expect our cash and cash equivalents to fund planned operations into 2027, supporting the biologics license application (BLA) filing of TA-ERT for the treatment of MPS IIIB, while also accelerating pre-launch commercial activities.”
Samir Gharib, President and Chief Financial Officer, Spruce Biosciences
“We believe Spruce is well-positioned to advance and potentially launch TA-ERT as the first disease-modifying therapy to treat MPS IIIB, and we’re proud to be partnering with this outstanding team to advance that mission. With no FDA-approved treatments currently available to treat MPS IIIB, TA-ERT has the potential to be a groundbreaking advancement for patients and families impacted by this devastating disease.”
Chad Norman, Senior Portfolio Manager, Avenue Capital
