PDL BioPharma
(PDL) PDLI and Avinger, Inc. announced today that they closed a
structured financing and royalty transaction on April 18, 2013, in which PDL
will provide Avinger with up to $40 million of financing.
Founded and led by the visionary cardiologist and medical device entrepreneur,
Dr. John Simpson, Avinger is a designer of therapeutic devices incorporating
intravascular imaging, and is a pioneer of the lumivascular approach to
treating vascular disease. This financing assists Avinger in the
commercialization of its currently marketed Ocelot^TM and Lightbox^TM
next-generation lumivascular catheter devices used to open totally occluded
arteries in the legs, and in the development of Pantheris^TM, Avinger's
next-generation lumivascular atherectomy device.
The total financing of up to $40 million was provided pursuant to a Credit
Agreement that included $20 million in cash funded to Avinger on April 18,
2013, and up to $20 million in additional funds to Avinger upon the
accomplishment of certain specified revenue milestones. In exchange, PDL will
receive interest on the principal amount outstanding and a low, single-digit
royalty on Avinger's revenues from the sale of Avinger's suite of products
through April 2018.
"We are very pleased to partner with Avinger. We are extremely impressed with
the depth and breadth of experience in Dr. Simpson and his team," said John P.
McLaughlin, president and chief executive officer of PDL. "Our thorough
diligence confirmed that he and the Avinger team continue to revolutionize the
total occlusion and atherectomy space. We are excited to support their
efforts."
"We are delighted to have chosen PDL as a partner," remarked Dr. Simpson, CEO
of Avinger. "We have been able to quickly and efficiently raise significant
capital without diluting our existing shareholders, something we find very
valuable. We look forward to a strong, mutually-beneficial relationship with
PDL."
About Avinger, Inc.
Founded in 2007 by renowned cardiologist and medical device entrepreneur Dr.
John B. Simpson, Avinger seeks to radically improve the treatment of vascular
disease through the development of new technology and a new approach to
treatment called lumivascular (lumi = light, vascular = artery). Already
commercially available is Ocelot, the first line of devices using lumivascular
technology, used in procedures to open totally occluded arteries in the legs.
In addition, Avinger is currently developing a line of lumivascular
atherectomy devices, called Pantheris, which will be used to remove plaque
from the arteries affected by peripheral artery disease.
About PDL BioPharma
PDL pioneered the humanization of monoclonal antibodies and, by doing so,
enabled the discovery of a new generation of targeted treatments for cancer
and immunologic diseases. Today, PDL is focused on intellectual property asset
management, investing in new income generating assets and maximizing value for
its shareholders. For more information, please visit www.pdl.com.
Cautionary Statements Concerning Forward-Looking Statements
This Press Release contains "forward-looking" statements as defined in the
Private Securities Litigation Reform Act of 1995. These statements are based
on management's current expectations or predictions of future conditions,
events or results based on various assumptions and management's estimates of
trends and economic factors in the markets in which we are active, as well as
our business plans. Words such as "expects", "anticipates", "intends",
"plans", "believes", "seeks", "estimates", "projects", "forecasts", "may",
"should", variations of such words and similar expressions are intended to
identify such forward-looking statements. The forward-looking statements may
include, without limitation, statements regarding product development, product
potential or financial performance. The forward-looking statements are subject
to risks and uncertainties, which may cause results to differ materially from
those set forth in the statements. Forward-looking statements in this release
should be evaluated together with the many uncertainties that affect the
business of each of Avinger and PDL and their markets, particularly those
discussed in the risk factors and cautionary statements in filings made by PDL
with the Securities and Exchange Commission. Forward-looking statements are
not guarantees of future performance, and actual results may differ materially
from those projected. The forward-looking statements are representative only
as of the date they are made, and neither Avinger nor PDL assumes any
responsibility to update any forward-looking statements, whether as a result
of new information, future events or otherwise.
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