VIVUS Enters into $110M Non-Equity Financing
VIVUS (NASDAQ: VVUS) today announced that it has entered into a $110 million non-equity financing with an investment fund managed by Pharmakon Advisors. Under the terms of this financing, VIVUS will make an initial draw of $50 million and will have the option, at its discretion, to draw an additional $60 million at any time prior to December 31, 2013.
"This royalty financing provides VIVUS with non-dilutive capital for continued commercialization of Qsymia and other corporate activities," stated Timothy E. Morris, senior vice president and chief financial officer, VIVUS, Inc. "The innovative financing arrangement has no equity component and is structured to allow maximum flexibility for VIVUS."
"We are pleased to be partnering with VIVUS for this transaction," said Pedro Gonzalez de Cosio, Managing Member of Pharmakon Advisors. "Based on our extensive confidential due diligence, we are impressed with the VIVUS team and have confidence in the commercial opportunities represented by Qsymia as an important therapy for chronic weight management."
Under the terms of the financing, VIVUS will make no payments for the first year. Repayments will begin in the second quarter of 2014 and end in the second quarter of 2018 and