Biolex Therapeutics, its plans to raise money through an initial public offering of stock scuttled by a tough Wall Street environment, has secured $10.5 million another way – through loans.

Biolex, which is developing a number of therapeutics based on the aquatic plant lemna, received the loans from Silicon Valley Bank and Oxford Finance Corporation.

The funds will be used for further drug development, the company said.

"We are pleased to be working with Silicon Valley Bank and Oxford due to their deep understanding of working with life science companies such as ours," said Dale Sander, chief financial officer of Biolex, in a statement. "Having financial partners that know our business is critical to ensuring that they have the expertise to contribute to our success."

Biolex’s lead product is a treatment for hepatitis C. It is in Phase II clinical trials.

The company, which is backed by Intersouth Partners in Durham and several other venture capital and high-profile investment firms, withdrew its planned initial public offeringin February.

Biolex filed for an $80 million IPO last August. Management cited “unfavorable market conditions” as the reason for withdrawing the planned exit.

Had the IPO been successful, Biolex would have traded on the Nasdaq under the symbol BLEX.

The company has raised close to $100 million in funding with Intersouth owning some 20 percent of the firm’s shares, according to Private Equity Wire. Other backers include Johnson & Johnson Development Corp., Quaker BioVentures and Polaris Venture Partners.

Biolex is developing therapeutic products based antibodies developed through patented technology. It closed on $30 million in funding in May of 2007. The round was oversubscribed, meaning investors put more money into the firm than management had intended to raise.

The company closed on $36 million in financing in 2005.