KING OF PRUSSIA, Pa., Jan. 8 Prism Pharmaceuticals announced today that it will receive a $10 million milestone payment from Paul Capital Healthcare (formerly Paul Royalty Funds), the healthcare investment platform of Paul Capital. The milestone payment is triggered by the recent U.S. Food and Drug Administration (FDA) approval of Prism's new drug application (NDA) for NEXTERONE(R) (amiodarone HCl) Injection, a novel, patent-protected, cosolvent free formulation of the antiarrhythmic agent Amiodarone IV. The long range financing agreement with Paul Capital Healthcare, established in September 2006, provides Prism with non-dilutive capital to bring NEXTERONE through to commercial launch in the US.
The September 2006 financing secured up to $68 million in capital from Paul Capital Healthcare and Essex Woodlands Health Ventures Fund VI, through a combination of equity and a revenue interest financing, which is funded based on the satisfaction of certain predetermined milestones.
"The flexible, forward-looking provisions of the Revenue Interest Assignment Agreement structured between Prism and Paul Capital are demonstrating its true value in the current financing climate surrounding emerging biopharmaceutical companies," said Dr. Warren D. Cooper, President and CEO of Prism Pharmaceuticals. "Our financial circumstances and ongoing support enable us to remain wholly focused on execution of our business plan and leveraging the NDA approval of our first product."
"Our initial investment in Prism Pharmaceuticals was based on the great potential of the company's approach to an alternative formulation of amiodarone and other drugs, and our belief in management's ability to bring new products to the market," said Dr. Walter Flamenbaum, a partner at Paul Capital Healthcare. "The capital provided by our Revenue Interest Assignment Agreement - a form of "synthetic royalty" agreement - with Prism is helping the company bring its first product to market and will support the development and commercialization efforts around other promising candidates in the Prism pipeline."
About Prism Pharmaceuticals
Prism Pharmaceuticals, based in King of Prussia, Pennsylvania, is a specialty pharmaceutical company committed to developing and commercializing acute care cardiovascular products. The product portfolio strategy is focused on recognizing unfulfilled opportunities in existing compounds that address current unmet medical needs with a specific focus on medication safety in the hospital environment. For further information, visit www.prismpharma.com.
About Essex Woodlands Health Ventures
Essex Woodlands Health Ventures is one of the United States' premiere venture capital firms focusing exclusively on the healthcare industry. Essex Woodlands recently raised their seventh fund of $600 million. The firm has offices in California, Texas, New York and London. The Essex Woodlands team has been involved in the founding, investing, and/or management of over 100 healthcare companies ranging across all sectors, stages and geography. For more information, visit http://www.ewhv.com.
About Paul Capital Healthcare (formerly Paul Royalty Fund) and Paul Capital
Paul Capital manages more than $6.5 billion in capital commitments for its three investment platforms and has offices in New York, San Francisco, Paris, London, Hong Kong and Sao Paulo. Paul Capital Healthcare comprises one of the largest dedicated healthcare funds globally, with approximately $1.6 billion under management. Paul Capital Healthcare has made investments in the pharmaceutical, biotechnology, and medical device sectors totaling more than $965 million. These investments are focused on commercial stage companies and products, and consist of investments in the form of royalties, revenue interests and equity. For more information on Paul Capital and Paul Capital Healthcare visit http://www.paulcapital.com.
SOURCE Prism Pharmaceuticals