Malvern’s Recro Pharma has secured a line of credit worth $100 million from funds managed by Athyrium Capital Management, writes John George for the Philadelphia Business Journal.
The financing is structured as a five-year, interest-only term loan set at the London Interbank Offered Rate, plus 9.75 percent.
Recro Pharma will use the funds to refinance its outstanding debt, pay a $45 million milestone to licensor Alkermes once its IV meloxicam is approved by the FDA, and for working capital.
[uam_ad id=”58459″]
Advertisement
Meloxicam is a late-stage-development, non-opioid medicine that is being developed by Recro for management of moderate to severe pain. The company also filed a new drug application with the FDA in July for its use in experimental therapy.
The funds will be made available in three tranches. The first amount of $60 million is available immediately and the second $20 million on FDA approval of IV meloxicam. The final $20 million will become available if Recro Pharma can prove the drug has early commercial traction.
“This financing demonstrates the continued strong performance, as well as belief in the future commercial prospects for IV meloxicam,” said Gerri Henwood, Recro Pharma’s CEO.
Read more about the financing in the Philadelphia Business Journal here, and check out previous VISTA Today coverage of Recro Pharma here.
[uam_ad id=”67180″]
