NEW YORK--(BUSINESS WIRE)--
Deerfield Management Company announced today it has committed to invest
up to $60 million in KemPharm, Inc. through a $10 million senior secured
convertible note and a $50 million senior secured term debt facility.
The facility provides KemPharm with capital to fund its clinical and
regulatory operations and to advance its lead product candidate, KP201,
through regulatory approval and initiate commercialization. KP201 is
being developed as an abuse-deterrent opioid analgesic.
At the initial closing of the transaction, Deerfield funded $15 million
of the term loan and $10 million of the convertible notes. KemPharm may
access the remaining $35 million of the term debt upon completion of
certain milestones. Additionally, in accordance with the financing
agreement, Jonathan S. Leff, Partner with Deerfield Management, has been
named to KemPharm’s Board of Directors.
Mr. Leff remarked, “We believe that KP201 and the rest of KemPharm’s
abuse-deterrent prodrugs could play an important role in helping to
address the epidemic of opioid abuse. We are pleased to partner with
KemPharm to advance the company’s programs to potential FDA approval and
Travis C. Mickle, Ph.D., President and CEO of KemPharm, commented, “This
financial commitment by Deerfield significantly strengthens KemPharm and
enables the rapid advancement of KP201 and our abuse-deterrent product
pipeline. KemPharm now has the financial and strategic backing of a
leading healthcare investment firm, which we intend to fully leverage as
we deploy our prodrug technology to help address the limitations of
existing opioid therapeutics and the epidemic problem of opioid abuse.”
“This financing provides KemPharm with the near-term capital required to
advance our corporate and clinical goals, while providing us with
additional flexibility to pursue opportunities that could further propel
the value potential of the company. We look forward to benefitting from
Deerfield’s wealth of industry and capital markets expertise,” concluded
Gordon K. “Rusty” Johnson, COO and CFO of KemPharm.
KemPharm is abiopharmaceutical company focused on the discovery
and development of new chemical entities (NCEs) to treat serious medical
conditions through its proprietary and broadly applicable Ligand
Activated Therapy (LAT) approach. The companyutilizes its LAT
technology to generate improved prodrug versions of FDA approved drugs
in the high-need areas of pain, ADHD and other CNS diseases. For more
information on KemPharm, please visit the company’s website at www.kempharm.com.
Deerfield is an investment management firm committed to advancing
healthcare through investment, information and philanthropy.
For more information, please visit www.deerfield.com
Deerfield Management Company
Karen Heidelberger, 212-692-7140
Source: Deerfield Management Company