Flamel Technologies, a drug discovery company based in Lyon, France, has raised $15 million in debt financing from New York-based Deefield Management Company. Deerfield is an existing shareholder; the funding — which Flamel will have to pay back in four years’ time, along with 12.5 percent interest interest — will allow Flamel to continue its investment in R&D.
Deerfield Management Company announced that it had closed a transaction with Flamel Technologies (NASDAQ: FLML) and two of Flamel’s subsidiaries to provide $15 million. The objective of the financing is to enable Flamel to continue development programs and regulatory filings related to its internal pipeline of products.
Deerfield provided the $15 million in return for notes bearing 12.5% interest that amortize over a period from 18 months to 4 years. Deerfield also received a royalty of 1.75% of net sales of certain products being developed by Flamel’s U.S. subsidiary, Éclat Pharmaceuticals, and transaction fee. The structure was responsive to Flamel’s cash flow requirements and interest in avoiding equity dilution.
About Flamel Technologies
Flamel, headquartered in Lyon, France, focuses on developing specialty pharmaceutical products to address unmet medical needs through the application of its drug delivery technologies. The financing provides Flamel with additional resources to continue developing a pipeline of specialty pharmaceutical products and explore further expansion of applications for its drug delivery technology.
About Deerfield Management Company
Deerfield is committed to advancing healthcare through investment, information and philanthropy.
For more information about Deerfield, please visit www.deerfield.com