Deerfield
About Deerfield

Launched in 1994, Deerfield Management Company is an investment firm dedicated to advancing healthcare through information, investment, and philanthropy—all toward the end goal of cures for disease, improved quality of life, and reduced cost of care.

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Investment

Supporting companies across the healthcare ecosystem with flexible funding models…

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Information

Delivering market research to the Deerfield team, its portfolio companies and other partners.

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Philanthropy

A New York City-based not-for-profit devoted to advancing innovative health care initiatives.

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Portfolio Companies

Deerfield generally maintains a combined portfolio of more than 150 private and public investments across the life science, medical device, diagnostic, digital health and health service industries at all stages of evolution from start-up to mature company.

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Research Collaborations

Deerfield partners with leading academic research centers, providing critical funding and expertise to further sustain and accelerate the commercialization of discoveries toward meaningful societal impact by advancing cures for disease.

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Strategic Partners

As a strategic partner, Deerfield offers capital, scientific expertise, business operating support, and unique access to innovation.

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Deerfield Foundation

The Deerfield Foundation is a New York City-based not-for-profit organization whose mission is to improve health, accelerate innovation and promote human equity.

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Cure Campus

Cure is a 12-story innovations campus in New York City that intends to bring together innovators from academia, government, industry, and the not-for-profit sectors to advance human health and accelerate the fight against disease.

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Cure Programming

Cure has a series of expert lectures intended to advance thought in healthcare, management, innovation, policy, and other relevant subjects. This fosters growth and education for those at Cure and its guests.

Events at the Cure

Deerfield Announces $30 Million Investment in Discovery Labs

February 13, 2013 04:01 PM Eastern Time

NEW YORK–(BUSINESS WIRE)–Deerfield Management Company, L.P. announced today that it has entered into a secured loan facility with Discovery Laboratories, Inc. (NASDAQ: DSCO), for up to $30.0 million in financing.

The financing provides Discovery with capital to commercialize its drug SURFAXIN®, which has been approved by the FDA for the prevention of Respiratory Distress Syndrome (RDS) in premature infants at high risk for RDS, and its AFECTAIR ® airway connector for infants receiving aerosolized medication in neonatal or pediatric intensive care units. The launch of these products will enable Discovery to transition from a development- to a commercial-stage company, and further develop its lead pipeline product, AEROSURF®. The financing was structured to provide funding over time as needed and to avoid the dilution and potential discount of a public offering of stock or convertible debt financing.

Under terms of the facility, Deerfield committed to advance $30 million this year: $10 million upon execution of the facility agreement and $20 million upon the first commercial sale of SURFAXIN. The loan matures in six years and accrues interest at 8.75% per annum, payable quarterly in cash. Upon the initial disbursement, Deerfield will receive warrants to purchase 2.3 million shares of common stock at an exercise price of $2.81 per share. Upon disbursement of the $20 million, Deerfield will receive warrants to purchase an additional 4.7 million shares of Common Stock at the same exercise price per share of Common Stock. All of the warrants will expire on the sixth anniversary date of the facility agreement. With each disbursement, Deerfield will receive a transaction fee equal to 1.5% of the amount disbursed.

“We believe that SURFAXIN® and AEROSURF® could represent meaningful improvements in the care of premature infants with respiratory distress syndrome,” commented William Slattery, Partner at Deerfield Management. “Our goal with this facility is to strengthen Discovery’s financial position in a minimally dilutive way and build a long-term relationship that helps advance these important programs for neonatal medicine.”

“We are encouraged by Deerfield’s confidence in the potential of our transformative technology and business strategy,” commented John G. Cooper, President and Chief Executive Officer at Discovery Labs. “After considering a variety of financing options, we worked with Deerfield to structure a facility that aligns with our near- and long-term strategy to achieve important commercial, development and strategic milestones.”

About Discovery Labs

Discovery Laboratories, Inc. is a specialty biotechnology company focused on respiratory critical care, initially in the management of respiratory distress syndrome in premature infants. Discovery Labs’ novel proprietary KL4 surfactant technology produces a synthetic, peptide-containing surfactant that is structurally similar to pulmonary surfactant. Discovery Labs is also developing its proprietary drug delivery technologies to enable efficient delivery of aerosolized KL4 surfactant and other inhaled therapies.

For more information, please visit www.Discoverylabs.com.

About Deerfield Management Company

Deerfield is committed to advancing healthcare through investment, information and philanthropy.

For more information about Deerfield, please visit www.deerfield.com.

Contacts

Deerfield Management Company
Karen Arnone, 212-922-1349
[email protected]