Broadfin Capital Provides $15MM Facility to Flamel
Flamel Technologies announced that it established a $15 million secured credit line with Broadfin Capital, a Flamel shareholder.
The $15 million credit facility can be drawn in three tranches of $5 million each. The company will draw $5 million initially and can draw up to two additional $5 million tranches prior to August 15, 2014, subject to certain conditions.
The credit line will allow the company to continue its investment in R&D projects and the launch of its first-NDA approved product, Bloxiverz™. The interest rate on any outstanding loan is 12.5% and the loan must be repaid on or before November 15, 2015. There is no cost for undrawn capital or any penalty or premium for early repayment. For each tranche of the line of credit drawn by Flamel, Broadfin Capital will also receive a royalty of less than 1.0% (subject to a maximum cumulative royalty of 2.0% if all three tranches are drawn) on net sales of Bloxiverz and the other products resulting from the R&D projects of the former Eclat Pharmaceuticals, subject to required regulatory approvals and sales of these products.
“This flexible line of credit from Broadfin Capital, drawn only as needed, will be used by Flamel to advance our extensive R&D portfolio in both the U.S. and France and our launch of Bloxiverz across the US, especially as we await potential FDA action on the status of unapproved versions of neostigmine that are still on the market. This line of credit also demonstrates Broadfin Capital’s confidence in our corporate strategy and focus,” said Mike Anderson, CEO of Flamel.
Flamel Technologies has a proprietary pipeline of niche specialty pharmaceutical products, while its drug delivery platforms are focused on the goal of developing safer, more efficacious formulations of drugs to address unmet medical needs.