DALLAS, July 17,
2023 /PRNewswire/ -- SWK Holdings Corporation
(Nasdaq: SWKH) ("SWK" or the "Company"), a life science-focused
specialty finance company catering to small and mid-sized
commercial-stage companies, today provided a corporate progress
update as well as a summary of the achievements of its borrower
partners.
"During the second quarter of 2023 SWK advanced our 2023
objectives including securing a new four-year credit facility with
First Horizon Bank with $45 million
committed at close," stated Jody
Staggs, President and CEO of SWK. "This credit
facility enables us to be a reliable source of funding for our
borrower partners during a time when capital available to the life
sciences sector is facing pressure. We remain focused on growing
our value per share and during the second quarter we repurchased
272,492 shares for $4.6 million, or
$16.88 per share. Year-to-date
we have repurchased over 301,000 shares for $5.1 million, or $17.03 per share. We view repurchasing shares at
the current discount to book as a highly accretive use of capital
that benefits shareholders."
Mr. Staggs continued: "Despite macroeconomic headwinds, the
majority of our portfolio continues to perform as expected, and SWK
remains well positioned due to our focus on financing
differentiated life science companies that address unmet medical
needs, which we believe will capture market share. Our
healthy balance sheet with minimal leverage and ongoing share
repurchase program provides us bandwidth to continue to deploy
capital in companies that have the potential to drive health care
innovation and deliver positive returns to our shareholders."
SWK Holdings Portfolio Updates
Flowonix Medical
During June, Algorithm Sciences, Inc.
purchased the assets of Flowonix Medical. SWK has received
$1.5mm of proceeds from the sale and
anticipates receiving approximately $0.5
million in additional proceeds from the estate. SWK
will also receive royalties on sales of the Prometra pump for
existing indications as well as royalties on sales of Algorithm's
PulmoProst therapy for Pulmonary Arterial Hypertension, which uses
the Prometra pump.
SWK will provide an update on the Flowonix finance receivable in
our second quarter earnings release.
SWK Holdings Borrower Partner Achievements
Aziyo Biologics, Inc.
Aziyo Biologics (Nasdaq: AZYO) is a biologics company with a
portfolio of regenerative products aimed at improving compatibility
between medical devices and the patients they treat.
- Reported 1Q23 net sales of $13.1
million, a 14% increase compared with 1Q22, and "cash" gross
profit margin of 55.0%, an over 1,000 bps improvement compared with
1Q22.
- Signed a partnership with LeMaitre Vascular to distribute
Aziyo's cardiovascular repair portfolio within the U.S., increasing
sales representative coverage five-fold.
- Launched U.S. distribution partnership with Sientra (Nasdaq:
SIEN) to drive availability and utilization of SimpliDerm.
- Held productive meeting with the FDA confirming the path to
resubmit the CanGaroo RM 510(k) for
pre-market clearance.
Biolase, Inc.
Biolase (Nasdaq: BIOL) is a medical device company that
develops, manufactures, and markets proprietary dental laser
systems.
- On May 26, 2023, Biolase
announced the closing of $4.5 million
underwritten public offering of Series H convertible redeemable
preferred stock and warrants.
Biotricity, Inc.
Biotricity (Nasdaq: BTCY) is a medical technology company
focused on delivering remote biometric monitoring solutions to the
medical and consumer markets.
- Biotricity reached a record $13
million annualized revenue run rate in April 2023, further extending its growth by 8%
from the $12 million run rate it
announced in March 2023.
Coflex Royalty
Coflex is an interlaminar stabilization device used after an
open decompression that can be performed in various settings,
offering a non-fusion treatment option for lumbar spinal stenosis
(LSS) patients.
- On February 28, 2023, Xtant
Medical and Surgalign entered into a Definitive Agreement and
subsequently closed on the transaction whereby Xtant acquired the
Coflex® and Cofix product lines from Surgalign for a total
consideration of $17 million.
Eton Pharmaceuticals, Inc.
Eton (Nasdaq: ETON) is an innovative pharmaceutical company
focused on developing and commercializing treatments for rare
diseases.
- Reported 1Q23 product and royalty revenue of $5.3 million, up 144% from 1Q22, and gross margin
of 63.0%, driven in part by record sales of Carglumic Acid and
Alkindi Sprinkles.
- Launched Betaine Anhydrous for the treatment of
homocystinuria.
Exeevo, Inc.
Exeevo is a global enterprise SaaS leader for life sciences
focused on elevating and transforming customer experiences.
- In June 2023 announced
Derek Evans as new CEO. Mr. Evans
was previously Senior Vice President of Growth at Exeevo.
FC2 Royalty
FC2 Female Condom is a female-initiated birth control offering
dual protection against STIs and unwanted pregnancy.
- In April 2023, the Company
entered into a supply agreement with Afaxys Group Services, LLC
(AGS), a healthcare company, to offer FC2 Female Condom® through
the AGS Group Purchasing Organization (GPO) for up to 31 million
individuals that depend on public health centers for essential
healthcare.
MedMinder
MedMinder is a leading fully integrated, end-to-end pharmacy,
medication adherence, and connected care solution for seniors and
polypharmacy patients.
- Announced that Troy Hilsenroth
was appointed as Chief Executive Officer. Mr. Hilsenroth joined
MedMinder after serving as CEO of Biolog-id, where he developed a
new SaaS platform and led the company through its preparation to go
public.
MolecuLight, Inc.
MolecuLight Inc. is a leader in point-of-care fluorescence
imaging that locates and detects elevated, pathogenic bacterial
loads in and around wounds.
- Released results of a study (which entailed treatment decisions
made on 1,000 chronic wounds at 211 wound-care facilities across 36
U.S. states) that showed its product drove wound care treatment
plan revisions in over 50% (528/1000) of cases in the study.
Neolight, Inc.
NeoLight is a medical device company focused on developing and
marketing technologies for treating preventable conditions in the
newborn care market.
- In April 2023, signed an
agreement to acquire key assets of interVIEW Medical Systems ROP
(retinopathy-of-prematurity) risk management education course and
ROP risk management clinical exam, collectively called the ROP
Certification Program.
About SWK Holdings Corporation
SWK Holdings
Corporation is a life science focused specialty finance company
partnering with small- and mid-sized commercial-stage healthcare
companies. SWK provides non-dilutive financing to fuel the
development and commercialization of lifesaving and life-enhancing
medical technologies and products. SWK's unique financing
structures provide flexible financing solutions at an attractive
cost of capital to create long-term value for all SWK stakeholders.
SWK's solutions include structured debt, traditional royalty
monetization, synthetic royalty transactions, and asset purchases
typically ranging in size from $5.0
million to $25.0
million. SWK also owns Enteris BioPharma, whose
Peptelligence® and ProPerma® drug delivery technologies
create oral formulations of peptide-based and BCS class II, III,
and IV small molecules. Additional information on the life science
finance market is available on the Company's website at
www.swkhold.com.
Safe Harbor Statement
This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Statements
including words such as "believes," "expects," "anticipates,"
"intends," "estimates," "plan," "will," "may," "look forward,"
"intend," "guidance," "future" or similar expressions are
forward-looking statements. Because these statements reflect SWK's
current views, expectations and beliefs concerning future events,
these forward-looking statements involve risks and uncertainties.
Investors should note that many factors, as more fully described
under the caption "Risk Factors" and elsewhere in SWK's Form 10-K,
Form 10-Q and Form 8-K filings with the Securities and Exchange
Commission and as otherwise enumerated herein, could affect the
Company's future financial results and could cause actual results
to differ materially from those expressed in such forward-looking
statements. The forward-looking statements in this press release
are qualified by these risk factors. These are factors which,
individually or in the aggregate, could cause the Company's actual
results to differ materially from expected and historical results.
You should not place undue reliance on any forward-looking
statements, which speak only as of the date they are made. We
assume no obligation to publicly update any forward-looking
statements, whether as a result of new information, future
developments or otherwise.
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SOURCE SWK Holdings Corporation
