MHR Fund Provides Debt Financing for Emisphere Product Launch
Emisphere Technologies announced it reached agreement with MHR Fund Management and certain of its affiliated funds (MHR), to finance the upcoming launch of the company’s first commercial prescription product, oral Eligen B12 in the U.S. through a new loan facility, and to amend the terms of the company’s existing obligations under various promissory notes previously issued to MHR to extend the maturity dates of such promissory notes.
Under the terms of the new loan facility, Emisphere may borrow, at specified times and based on the attainment of specified performance milestones, up to an aggregate of $20 million to finance the development, manufacturing, marketing and sales of the B12 product. The new loan facility will mature on December 31, 2019, and bear interest at a rate of 13% per year.
The company and MHR also entered into a royalty agreement in connection with the entry into the new loan facility which obligates the Company to make certain payments to MHR based on the sale and licensing of Eligen B12 and related products.
“With the commitment for $20 million in total funding, this new loan facility strengthens our balance sheet and provides sufficient capital to fund the upcoming commercial launch of Eligen B12 in the U.S.,” said Alan L. Rubino, president and CEO of Emisphere. “Eligen B12 is the first clinically demonstrated, effective oral therapy for patients with B12 deficiency who are currently receiving painful intramuscular B12 injections. We appreciate MHR’s continued financial support and we look forward to a successful commercial launch.”
Oral Eligen® B12 (1000mcg) is a prescription product for use by B12 deficient individuals.
Emisphere Technologies is a commercial-stage, specialty pharmaceutical company.