Journey Medical, a commercial-stage pharmaceutical company that primarily focuses on the selling and marketing of FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions, entered into a credit facility with an affiliate of SWK Holdings Corporation, a specialized finance company with a focus on the global healthcare sector, providing for borrowings of up to $20 million.
“This financing strengthens Journey Medical’s balance sheet and provides us with additional operational flexibility. The funding will support general corporate purposes, as well as anticipated expenses for DFD-29, including an upcoming new drug application submission and preparation for its potential commercial launch, pending FDA approval,” Claude Maraoui, co-founder, president and CEO of Journey Medical, said.
The credit facility provides for an initial term loan of $15 million that the company intends to use to fund general corporate operations as well as commercial and DFD-29 product development initiatives. The credit facility is expected to mature four years from funding and has an initial interest-only period for the first two years, which may be extended to three years based on the achievement of a specified revenue threshold. The company also has the option to draw an additional tranche of $5 million under the credit facility, subject to the achievement of specified operational and financial metrics in the 12 months following the date of the credit facility.
