Osmotica Pharmaceuticals plc Announces Debt Financing from Athyrium Capital Management of up to $100 Million
October 07 2021 - 8:04AM
Osmotica Pharmaceuticals plc (Nasdaq: OSMT) (“Osmotica” or the
“Company”), a specialty pharmaceutical company, today announced
that it has entered into a note purchase agreement for up to $100
million of senior secured notes with funds managed by Athyrium
Capital Management (“Athyrium”).
“This financing provides the Company with additional cash to
support the commercialization of Upneeq®,” stated Brian Markison,
Chief Executive Officer. “We are excited to have Athyrium, a
leading health care investor, as our financial partner.”
“We are thrilled to partner with the Osmotica team and to
provide capital to support the commercial efforts around Upneeq,”
said Mark Kavulich, Partner, Athyrium Capital Management. “As a
first-in-class treatment for acquired ptosis, Upneeq offers
patients and clinicians a convenient non-surgical therapeutic
option. We look forward to supporting management’s growth
initiatives.”
Subject to the satisfaction of certain conditions, at closing of
the agreement, Osmotica will issue $55 million of senior secured
notes. An additional $20 million of notes will be available to
Osmotica at its option by October 2022 subject to the achievement
of minimum Upneeq revenues. An additional $25 million of notes
could be available to the Company at Athyrium’s discretion. The
notes mature in October 2026. Important information with respect to
this financing, including a copy of the note purchase agreement, is
set forth in a Current Report on Form 8-K filed by the Company with
the Securities and Exchange Commission on October 6, 2021 and can
be found at
https://www.sec.gov/ix?doc=/Archives/edgar/data/1739426/000110465921123653/tm2129380d2_8k.htm.
IMPORTANT SAFETY INFORMATION
INDICATION
UPNEEQ® (oxymetazoline hydrochloride ophthalmic solution), 0.1%
is indicated for the treatment of acquired blepharoptosis in
adults.
WARNINGS AND PRECAUTIONS
- Ptosis may be associated with neurologic or orbital diseases
such as stroke and/or cerebral aneurysm, Horner syndrome,
myasthenia gravis, external ophthalmoplegia, orbital infection and
orbital masses. Consideration should be given to these conditions
in the presence of ptosis with decreased levator muscle function
and/or other neurologic signs.
- Alpha-adrenergic agonists as a class may impact blood pressure.
Advise UPNEEQ patients with cardiovascular disease, orthostatic
hypotension, and/or uncontrolled hypertension or hypotension to
seek medical care if their condition worsens.
- Use UPNEEQ with caution in patients with cerebral or coronary
insufficiency or Sjögren’s syndrome. Advise patients to seek
medical care if signs and symptoms of potentiation of vascular
insufficiency develop.
- UPNEEQ may increase the risk of
angle closure glaucoma in patients with untreated narrow-angle
glaucoma. Advise patients to seek immediate medical care if signs
and symptoms of acute narrow-angle glaucoma develop.
- Patients should not touch the tip of
the single patient-use container to their eye or to any surface, in
order to avoid eye injury or contamination of the solution.
ADVERSE REACTIONS
Adverse reactions that occurred in 1-5% of subjects treated with
UPNEEQ were punctate keratitis, conjunctival hyperemia, dry eye,
blurred vision, instillation site pain, eye irritation and
headache.
DRUG INTERACTIONS
- Alpha-adrenergic agonists, as a class, may impact blood
pressure. Caution in using drugs such as beta-blockers,
anti-hypertensives, and/or cardiac glycosides is advised. Caution
should also be exercised in patients receiving alpha adrenergic
receptor antagonists such as in the treatment of cardiovascular
disease, or benign prostatic hypertrophy.
- Caution is advised in patients taking monoamine oxidase
inhibitors which can affect the metabolism and uptake of
circulating amines.
About Osmotica Pharmaceuticals plc
Osmotica Pharmaceuticals plc (Nasdaq: OSMT) is a specialty
biopharmaceutical company focused on the development and
commercialization of products that target markets with underserved
patient populations. RVL Pharmaceuticals, Inc. is the Company’s
ophthalmic subsidiary supporting UPNEEQ®.
Osmotica has operations in the United States and Hungary.
About Athyrium Capital Management,
LP
Athyrium Capital Management, LP is a specialized
asset management company formed in 2008 to focus on investment
opportunities in the global healthcare sector. Athyrium advises
funds with over $4.8 billion in committed capital. The Athyrium
team has substantial investment experience across a wide range of
asset classes including public equity, private equity, fixed
income, royalties, and other structured securities. Athyrium
invests across all healthcare verticals including biopharma,
medical devices and products, healthcare focused services, and
healthcare information technology. The team partners with
management teams to implement creative financing solutions to
companies' capital needs.
Forward Looking Statements
This press release includes statements that express the
Company’s opinions, expectations, beliefs, plans, objectives,
assumptions or projections regarding future events or future
results and therefore are, or may be deemed to be, “forward-looking
statements.” The Company’s actual results may vary significantly
from the results anticipated in these forward-looking statements,
which can generally be identified by the use of forward-looking
terminology, including the terms “believes,” “expects,” “may,”
“will,” “should,” “seeks,” “projects,” “approximately,” “intends,”
“plans,” “estimates” or “anticipates,” or, in each case, their
negatives or other variations or comparable terminology. These
forward-looking statements include all matters that are not
historical facts, such as statements regarding our prospects,
growth plan, strategies, trends and other events and the closing
and terms of the financing. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future. The Company may not achieve the plans, intentions or
expectations disclosed in these forward-looking statements, and you
should not place significant reliance on these forward-looking
statements. Actual results or events could differ materially from
the plans, intentions and expectations disclosed in the
forward-looking statements the Company makes. Important factors
that could cause actual results and events to differ materially
from those indicated in the forward-looking statements include the
following: our inability to satisfy the closing conditions under
the note purchase agreement; our ability to obtain additional
funding to continue our operations; our dependence on a limited
number of products; the impact of legal proceedings; our ability to
service our substantial debt; our ability to raise additional
capital; the impact of competition from both brand and generic
companies; any interruption at our warehouses or at facilities
operated by third parties that we rely on for our products; our
ability to develop and maintain our sales capabilities; the impact
of any litigation related to allegations of infringement of
intellectual property; the impact of any changes in the extensive
governmental regulation that we face; quality control issues that
we may face; and the risks and uncertainties described in the
“Risk Factors” section of the Company’s Current Report on Form 8-K,
as filed with the Securities and Exchange Commission on September
8, 2021, and the other filings that the Company makes with the
Securities and Exchange Commission. These forward-looking
statements speak only as of the time of this release and the
Company does not undertake to publicly update or revise them,
whether as a result of new information, future events or otherwise,
except as required by law.
Investor and Media Relations for Osmotica
Pharmaceuticals plcLisa M. WilsonIn-Site Communications,
Inc.T: 212-452-2793E: lwilson@insitecony.com
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