NEW YORK –(BUSINESS WIRE) – June 3, 2014– Deerfield Management Company announced today it has committed to invest up to $60 million in KemPharm, Inc. through a $10 million senior secured convertible note and a $50 million senior secured term debt facility. The facility provides KemPharm with capital to fund its clinical and regulatory operations and to advance its lead product candidate, KP201, toward regulatory approval and initiate commercialization. KP201 is being developed as an abuse-deterrentopioid analgesic.
At the initial closing of the transaction, Deerfield funded $15 million of the term loan and $10 million of the convertible notes. KemPharm may access the remaining $35 million of the term debt upon completion of certain milestones. Additionally,in accordance with the financing agreement, Jonathan S. Leff, Partner with Deerfield Management, has been named to KemPharm’s Board of Directors.
Mr. Leff remarked, “We believe that KP201 and the rest of KemPharm’s abuse-deterrent prodrugs could play an important role in helping to address the epidemic of opioid abuse. We are pleased to partner with KemPharm to advance the company’s programs to potential FDA approval and commercialization.”
Travis C. Mickle, Ph.D., President and CEO of KemPharm, commented, “This financial commitment by Deerfield significantly strengthens KemPharm and enables the rapid advancement of KP201 and our abuse-deterrent product pipeline. KemPharm now has the financial and strategic backing of a leading healthcare investment firm, which we intend to fully leverage as we deploy our prodrug technology to help address the limitations of existing opioid therapeutics and the epidemic problem of opioid abuse.”
“This financing provides KemPharm with the near-term capital required to advance our corporate and clinical goals,while providing us with additional flexibility to pursue opportunities that could further propel the value potential of the company. We look forward to benefitting from Deerfield’s wealth of industry and capital markets expertise” concluded Gordon K. “Rusty” Johnson, COO and CFO of KemPharm.
About KemPharm
KemPharm is a biopharmaceutical company focused on the discovery and development of new chemical entities(NCEs) to treat serious medical conditions through its proprietary and broadly applicable Ligand Activated Therapy (LAT) approach. The company utilizes its LAT technology to generate improved prodrug versions of FDA approved drugs in the high-need areas of pain, ADHD and other CNS diseases. For more information on KemPharm, please visit the company’s website at www.kempharm.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
Contacts
Deerfield Management Company
Karen Heidelberger, 212-692-7140
[email protected]