Published 15 February 2018
Veloxis Pharmaceuticals has secured $60m of capital from funds managed by Athyrium Capital Management, a healthcare-focused investment firm.
The proceeds from the commitment will be used to refinance Veloxis’s outstanding debt, accelerate the growth of Envarsus XR in the US and help fund working capital of Veloxis Pharmaceuticals.
Veloxis Pharmaceuticals president and CEO Craig Collard said: “We are pleased to have this opportunity to collaborate with Athyrium, a partner known for its strategic investments in healthcare.
“The $60m non-dilutive financing enhances our cash position and provides the Company with the capital needed to execute on our commercial strategy with Envarsus.”
Athyrium partner Richard Pines said: “We are excited about funding the commercial launch of Envarsus XR. Its strong traction in a genericized market is an indication of the strength of its clinical profile, as transplant surgeons and nephrologists seek to best manage transplant rejection and immunosuppression in this fragile patient population.”
This financing is in the form of a five-year, floating rate, interest only note. The initial principal balance doubles the amount of debt at substantially the same cost of capital versus the previous debt instrument.
The funds are structured with $60m available immediately upon closing of the transaction to Veloxis Pharmaceuticals, Inc. and guaranteed by Veloxis Pharmaceuticals A/S.
Veloxis Pharmaceuticals A/S is a biopharmaceutical company focused on improving patient lives by identifying, developing, and commercializing meaningful products in transplantation and adjacent therapies.
Utilizing our proprietary drug delivery technology (MeltDose®), Veloxis has developed and obtained FDA and EMA approval for our product, Envarsus XR (tacrolimus extended-release tablets), to aid in the prophylaxis of organ rejection in transplant recipients.
Source: Company Press Release