| [March 12, 2015] |
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Deerfield Provides Debt Facility to Depomed
Deerfield announced a $375 million debt investment in Depomed, Inc. as
part of $575 million facility to support Depomed's $1.05 billion
acquisition of the U.S. rights to NUCYNTA® from Janssen Pharmaceuticals.
Depomed has announced that the Nucynta transaction will more than double
its revenue base and that it is immediately accretive to earnings.
Deerfield will provide a $375 million facility which will accrue
interest quarterly and amortize in annual increments from the third
through the seventh anniversaries of the closing. The company has the
right to prepay the facility in tranches at its discretion.
"The acquisition of NUCYNTA is transformational for Depomed. Our
facility has been structured to avoid equity dilution and provide
flexible terms for repayment and future acquisitions." said Alex Karnal,
Partner at Deerfield Management.
"We are excited to partner with Deerfield, one of the premier investors
that provides growth capital for pharmaceutical firms like Depomed. The
facility with Deerfield and Pharmakon allows Depomed to close the
Nucynta transaction without dilution to our shareholders while we
continue to look for assets to further grow our business," stated Jim
Schoeneck, President and CEO of Depomed.
About Depomed
Depomed is a specialty pharmaceutical company that commercializes
products for pain and neurology related disorders. Gralise®
(gabapentin) is a once-daily treatment approved for the management of
postherpetic neuralgia. CAMBIA® (diclofenac potassium for
oral solution) is a non-steroidal anti-inflammatory drug indicated for
acute treatment of migraine attacks with or without aura in adults (18
years of age or older). Zipsor® (diclofenac potassium) Liquid
Filled Capsules is a non-steroidal anti-inflammatory drug indicated for
relief of mild to moderate acute pain in adults. Lazanda®
(fentanyl) Nasal Spray is an intranasal fentanyl drug used to manage
breakthrough pain in adults (18 years of age or older) who are already
routinely taking other opioid pain medicines around-the-clock for cancer
pain. Gralise and various partner product candidates are formulated with
Depomed's proven, proprietary Acuform® drug delivery
technology. Depomed has announced the acquisition of the U.S. rights to
the NUCYNTA franchise from Janssen Pharmaceuticals, Inc. which is
expected to close in the second quarter of 2015. The NUCYNTA franchise
includes NUCYNTA® ER (tapentadol) extended release tablets
indicated for the management of pain, including neuropathic pain
associated with diabetic peripheral neuropathy (DPN), severe enough to
require daily, around-the-clock, long-term opioid treatment, and NUCYNTA®
(tapentadol), an immediate release version of tapentadol, for management
of moderate to severe acute pain in adults. Additional information about
Depomed may be found at www.Depomed.com.
About Deerfield
Deerfield is an investment management firm committed to advancing
healthcare through investment, information and philanthropy.
For more information, please visit www.deerfield.com.
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