Antares Pharma Announces Debt Financing From Hercules Capital
June 07 2017 - 7:00AM
Antares Pharma, Inc. (NASDAQ:ATRS) today announced that it has
entered into a loan and security agreement for a term loan of up to
$35 million, with Hercules Capital, Inc. (NYSE:HTGC) (“Hercules”),
a leader in customized debt financing for companies in life
sciences and renewable technology industries.
“We believe today’s announcement of a structured
debt financing further strengthens our cash position and gives us
the ability to properly invest in the launch of XYOSTED, an
investigational product for testosterone replacement therapy with a
new drug application currently under active review at the Food and
Drug Administration,” stated Robert F. Apple, President and Chief
Executive Officer of Antares Pharma. “This non-dilutive
financing allows us to continue to execute on our corporate
objectives which we believe will ultimately enhance shareholder
value. We are excited that Hercules has chosen to support our
growth plan.”
“Hercules is pleased to enter into this financing
partnership with Antares at this important stage to allow it to
invest in its commercial-stage assets as well as continue to
advance and expand its pipeline,” said Scott Bluestein, Chief
Investment Officer at Hercules Capital. “This investment in Antares
provides another example of our ability to creatively finance life
sciences companies through multiple stages of development and
through various value inflection points.”
The first tranche of $25 million was funded upon
execution of the loan agreement. Under the terms of the
agreement, Antares has the option to draw up to an additional $10
million upon achievement of a certain performance milestone.
The term of the loan is five years and payments under the loan are
interest only for the initial 24-month period, followed by equal
monthly installments of principal and interest thereafter until the
end of the five-year term. The interest-only period may be extended
to 30 months contingent upon Antares achieving a certain milestone.
The interest rate on the loan is 8.5% with a maximum rate of 9.5%.
Further information with respect to the debt financing agreement
with Hercules will be contained on a Form 8-K to be filed by
Antares Pharma with the Securities and Exchange Commission.
About Hercules Capital, Inc.
Hercules Capital, Inc. is the leading and largest
specialty finance company focused on providing senior secured
venture growth loans to high-growth, innovative venture
capital-backed companies in a broad variety of technology, life
sciences and sustainable and renewable technology industries.
Since inception (December 2003), Hercules has committed more than
$6.7 billion to over 375 companies and is the lender of choice for
entrepreneurs and venture capital firms seeking growth capital
financing.
About Antares Pharma
Antares Pharma focuses on self-administered
parenteral pharmaceutical products. The Company’s product, OTREXUP®
(methotrexate) injection for subcutaneous use, is approved in the
U.S. for the treatment of adults with severe active rheumatoid
arthritis, children with active polyarticular juvenile idiopathic
arthritis and adults with severe recalcitrant psoriasis. The
Company’s product Sumatriptan Injection USP, is approved in the
U.S. for the acute treatment of migraine and cluster headache and
is distributed by Teva Pharmaceutical Industries, Ltd. (Teva).
Antares Pharma is also developing XYOSTED™, an
investigational product for testosterone replacement therapy and
has filed a New Drug Application with the Food and Drug
Administration. The Company's technology platforms include VIBEX®
disposable auto injectors, disposable multi-use pen injectors and
reusable needle-free injectors. Antares Pharma has license,
development and supply agreements with Teva that include VIBEX®
epinephrine, exenatide multi-dose pen, and teriparatide multi-dose
pen. Our reusable needle-free injector for use with human
growth hormone (hGH) is sold worldwide by Ferring B.V. The
Company is also working with AMAG Pharmaceuticals on a subcutaneous
method for administering Makena, a progesterone product indicated
for use in lowering the risk of pre-term birth. For more
information, visit www.antarespharma.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to certain risks and
uncertainties that can cause actual results to differ materially
from those described. Factors that may cause such differences
include, but are not limited to: U.S. Food and Drug Administration
(“FDA”) approval of the XYOSTED™ NDA and future market acceptance
and revenue for XYOSTED™; FDA approval of the sNDA submitted by
AMAG Pharmaceuticals for an auto injector for Makena and future
market acceptance and revenue of the same; the outcome of the
pending patent litigation between Teva Pharmaceutical Industries,
Ltd. (Teva) and Eli Lilly and Company regarding the Teriparatide
multi-dose pen; FDA action with respect to Teva’s Abbreviated New
Drug Application (“ANDA”) for the Teriparatide multi-dose pen and
the timing and approval, if any, by the FDA of the same; Teva’s
ability to adequately respond to the Complete Response Letter
received from the FDA for the VIBEX® epinephrine pen ANDA and
approval by the FDA of the same, the timing and therapeutic
equivalence rating thereof, and any future purchase orders and
revenue pre or post FDA approval; Teva’s ability to successfully
commercialize VIBEX® Sumatriptan Injection USP and the amount of
revenue from the same; FDA action with respect to Teva’s ANDA filed
for the Exenatide pen and future revenue from the same; continued
growth of prescriptions and sales of OTREXUP®; the timing and
results of research projects, clinical trials, and product
candidates in development; actions by the FDA or other regulatory
agencies with the respect to the Company’s products or product
candidates of its partners; continued growth in product,
development, licensing and royalty revenue; the Company’s ability
to obtain financial and other resources for its research,
development, clinical, and commercial activities and other
statements regarding matters that are not historical facts, and
involve predictions. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results, performance, achievements or prospects to be materially
different from any future results, performance, achievements or
prospects expressed in or implied by such forward-looking
statements. In some cases you can identify forward-looking
statements by terminology such as ''may'', ''will'', ''should'',
''would'', ''expect'', ''intend'', ''plan'', ''anticipate'',
''believe'', ''estimate'', ''predict'', ''potential'', ''seem'',
''seek'', ''future'', ''continue'', or ''appear'' or the negative
of these terms or similar expressions, although not all
forward-looking statements contain these identifying words.
Additional information concerning these and other factors that may
cause actual results to differ materially from those anticipated in
the forward-looking statements is contained in the "Risk Factors"
section of the Company's Annual Report on Form 10-K for the year
ended December 31, 2016, and in the Company's other periodic
reports and filings with the Securities and Exchange
Commission. The Company cautions investors not to place undue
reliance on the forward-looking statements contained in this press
release. All forward-looking statements are based on information
currently available to the Company on the date hereof, and the
Company undertakes no obligation to revise or update these
forward-looking statements to reflect events or circumstances after
the date of this press release, except as required by
law.
Contact:
Jack Howarth
Vice President, Corporate Affairs
609-359-3016
jhowarth@antarespharma.com
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