Adamas Announces Agreement to Amend Royalty-Backed Loan Agreement with HealthCare Royalty Partners
December 02 2020 - 6:51AM
Adamas Pharmaceuticals, Inc. (Nasdaq: ADMS), a company dedicated to
developing and delivering medicines that make a meaningful
difference to people affected by neurological diseases,
today announced it has entered into an agreement to amend
certain key terms of its Royalty-Backed Loan agreement
(“Royalty-Backed Loan”) with HealthCare Royalty
Partners (“HCR”). The key terms amended are summarized as
follows:
- Revised to provide for repayment
from a royalty on OSMOLEX ER® on the same terms as,
and in addition to, the royalty for GOCOVRI®.
- Eliminated the potential royalty
rate step-up to 17.5%, which would have occurred in 2022 if
cumulative payments did not reach minimum specified levels by
December 31, 2021. The 22.5% royalty rate step-up if
total cumulative payments have not reached minimum
specified levels as measured at December 31, 2022,
remains.
- Revised prepayment provisions after
a change of control provision to provide that the obligation
to HCR is fully satisfied by making a prepayment sufficient to
bring the cumulative payments to HCR to $175 million, if such
prepayment is made on or prior to December 31, 2022, or $195
million if made thereafter.
- Extended the maturity date to
March 31, 2027, if not earlier repaid.
- Added covenant requiring Adamas
to maintain a minimum cash and investments balance of $25
million at all times through the term of the Royalty-Backed
Loan.
- The amendment will come into effect
upon closing the acquisition of OSMOLEX ER in early
2021.
“We are pleased to announce the amendment to
certain key terms of our agreement with HealthCare Royalty
Partners. These revisions allow us to further focus on
improving our operational effectiveness to deliver our
medicines to patients,” said Neil F. McFarlane, Chief Executive
Officer. “We appreciate the continued partnership with HCR and
believe the amendment will provide added flexibility to
facilitate the growth of Adamas in line with our long-term
strategy.”
About GOCOVRI®GOCOVRI®
(amantadine) extended-release capsules is the first and only
FDA-approved medicine indicated for the treatment of dyskinesia in
patients with Parkinson’s disease receiving levodopa-based therapy,
with or without concomitant dopaminergic medications. It is also
the only medicine clinically proven to reduce both dyskinesia and
OFF.
Taken once daily at bedtime, GOCOVRI provides an
initial lag and a slow rise in amantadine concentration during the
night, resulting in a high concentration from the morning and
throughout the waking day. Additionally, in the clinical trials,
the adjunctive use of GOCOVRI did not require dose changes to
dopaminergic therapies. The most commonly
observed adverse reactions with GOCOVRI were hallucinations,
dizziness, dry mouth, peripheral edema, constipation, falls and
orthostatic hypotension.
For more information about GOCOVRI, please
visit www.GOCOVRI.com.
ABOUT OSMOLEX ER®OSMOLEX
ER®, (amantadine) extended-release tablets, is
FDA-approved for the treatment of Parkinson’s disease and
drug-induced extrapyramidal reactions in adult
patients. OSMOLEX ER is contraindicated in patients with
end-stage renal disease (i.e., creatinine clearance below 15
mL/min/1.73 m2). The most common adverse reactions reported in ≥5%
of patients at the recommended dosage of immediate-release
amantadine were nausea, dizziness/lightheadedness, and
insomnia.
For more information about OSMOLEX ER, including
the full Prescribing Information, please visit
www.OSMOLEX.com
About AdamasAt Adamas our
vision is clear - to deliver innovative medicines that reduce the
burden of neurological diseases on patients, caregivers and
society. We are a fully integrated company focused on growing a
portfolio of therapies to address a range of neurological diseases.
For more information, please
visit www.adamaspharma.com.
Forward-looking
statementsStatements contained in this press release
regarding matters that may occur in the future are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, including but not limited to, statements
contained in this press release regarding Adamas’
expectations that the amendment to the
agreement with HCR will provide added flexibility to
facilitate the growth of Adamas in line
with its long-term strategy. Such statements are subject
to risks and uncertainties, and actual results may differ
materially from those expressed or implied by such forward-looking
statements. For a description of risks and uncertainties that could
cause actual results to differ from those expressed in
forward-looking statements, including risks relating to Adamas’
research, clinical, development and commercial activities relating
to GOCOVRI and ADS-5102, and the regulatory and competitive
environment and Adamas’ business in general, see Adamas’ Quarterly
Report on Form 10-Q filed with the Securities and Exchange
Commission on November 5, 2020, particularly under the caption
“Risk Factors.” In addition, the impact that the current COVID-19
pandemic is having and will have on demand for GOCOVRI, and the
unknown duration and severity of the COVID-19 pandemic, add
additional risk and uncertainty to these forward-looking
statements. Investors are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this release. Adamas undertakes no obligation to update any
forward-looking statement in this press release, except as required
by law.
Contact:
MediaSarah MathiesonVice
President of Corporate
Communications510-450-3528smathieson@adamaspharma.com
InvestorsPeter VozzoManaging
Director, Westwicke443-213-0505peter.vozzo@westwicke.com
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