Flamel Completes Debt Financing With Deerfield Management
Flamel Technologies said it has completed a $15 million debt financing with Deerfield Management, a current Flamel shareholder. The financing will allow the company to continue its investment in R&D projects.
The interest rate on the debt is 12.5% and the debt must be repaid over four years, with the initial payment of principal and accrued interest due in 18 months. Deerfield Management will also receive a 1.75% royalty on net sales of products resulting from the R&D projects of the former clat Pharmaceuticals, subject to required regulatory approvals and sales of these products.
“This additional financing from Deerfield Management will provide Flamel with the means to advance our extensive R&D portfolio in both the U.S. and France as we continue to work to build a world-class specialty pharmaceutical business, and also demonstrates Deerfield Management’s confidence in our approach and strategic focus,” said Mike Anderson, chief executive officer of Flamel. “This financing will not result in dilution to our shareholders. We believe that dilution to our shareholders at current levels is unacceptable and was not an option.”