In July of 2012 Deerfield invested $125 million through a private placement of 12% Senior Secured Notes due 2017. Proceeds from this financing were used to pay down Nektar’s convertible subordinated notes with an upcoming September 2012 maturity. This non-dilutive transaction preserved the company’s cash position, thus giving them increased confidence and flexibility to pursue development of their extensive R&D pipeline in pain, oncology, and other therapeutic areas.