EKR Therapeutics Inc., a Cedar Knolls, N.J.-based drug acquisition and commercialization company focused on acute-care products, has raised $50 million in Series D funding. It also has secured $95 million in senior debt. MPM Capital and LLR Partners co-led the equity round, and were joined by return backers Quaker BioVentures, NewSpring Capital and ESP Equity Partners. The debt was provided by GE Healthcare Financial Services.
EKR Therapeutics, Inc., a specialty pharmaceutical company focused on acquiring, commercializing and maximizing the potential of proprietary acute-care products, announced it has successfully completed the private placement of $50 million in Series D equity while also securing $95 million in senior debt.
The equity funding round was led by new investors MPM Capital and LLR Partners. Also participating were prior investors Quaker BioVentures and the Garden State Life Sciences Venture Fund managed by Quaker, as well as original institutional investors NewSpring Capital and ESP Equity Partners. The debt financing is being provided by GE Healthcare Financial Services.
As part of the equity financing, Steven St. Peter, M.D., General Partner at MPM Capital, and Scott A. Perricelli, Partner at LLR Partners, have joined the EKR board of directors. In turn, the board has expanded to seven members including five non-executive and two executive directors.
“The support of such a premier group of investors and lenders reflects a vote of confidence in EKR's business plan and is a testimony to the Company's past successes and future prospects,” said Howard Weisman, EKR's chairman and CEO. “Since initiating operations less than two years ago, we have built a solid commercial organization with several on-the-market products and our own sales force. We are well positioned to enter the next stage of growth and to realize our goal of becoming the pre-eminent provider of specialty acute-care products.”
Richard DeSimone, EKR director and CFO, noted, “Our ability to access new, quality sources of capital and garner additional support from existing, leading healthcare investors is highly gratifying. Additionally, with today's announced financing transactions, plus cash on hand, we have significantly enhanced EKR's flexibility to fuel the growth of our on-going operations while pursuing strategic initiatives to bolster that growth.”
A portion of the financing proceeds will be utilized to pursue acquisition candidates for EKR's portfolio of specialty acute-care products. That portfolio was recently enlarged by the first-quarter 2008 acquisitions of the Cardene