Kaleo Enters $150M Debt Facility to Support Commercialization
Monday, April 7, 2014
Kaleo (formerly Intelliject) has entered into a $150 million debt facility with PDL BioPharma to enable kaleo to support commercialization of EVZIO (naloxone hydrochloride injection), development of key pipeline products and to repay existing debt. EVZIO was approved by the FDA on April 3, and is intended for the emergency treatment of known or suspected opioid overdose, as manifested by life-threatening respiratory depression.
"We believe patients and caregivers are experts on how their medical condition impacts their lives, and they are an integral part of our product development process. As we begin the next phase of our company's growth, we are pleased to have the additional support of our collaboration with PDL BioPharma," said Spencer Williamson, President and CEO of kaleo.
Under the financing, PDL provided $150 million in cash at closing and will receive interest on the principal outstanding. The note is backed by royalty payments on kaleo's first product (Auvi-Q in the US and Allerject in Canada) (www.auvi-q.com) and a portion of the net sales on its second product (EVZIO)(www.evzio.com). Once the note is repaid, kaleo will resume receiving 100% of all product royalties and net sales.
"Kaleo's business model and patient driven product development process is unique. Auvi-Q and EVZIO are novel and exciting products and we believe that kaleo has additional promising products in development," stated John McLaughlin, President and CEO of PDL BioPharma.