Market Overview

Aerie Pharmaceuticals Announces Deerfield's Conversion of Convertible Notes into Aerie Common Stock and Establishment of an Undrawn $100M Credit Facility with Deerfield

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Aerie Pharmaceuticals, Inc. (NASDAQ:AERI), an ophthalmic pharmaceutical
company focused on the discovery, development and commercialization of
first-in-class therapies for the treatment of patients with open-angle
glaucoma, retina diseases and other diseases of the eye, today announced
that the $125 million of senior secured convertible notes held by
affiliates (the "holders") of Deerfield Management Company L.P.
("Deerfield") since September 2014 have been fully converted into
5,040,323 shares of Aerie common stock in accordance with their terms,
plus the issuance of 329,124 additional shares mutually agreed to with
the holders in order to complete the conversion at this time, for a
total of 5,369,447 shares.

Aerie's outstanding shares of common stock have increased to 45,208,820
on a pro-forma basis, reflecting the 5,369,447 shares issued to the
holders plus outstanding shares on June 30, 2018 of 39,839,373.

In addition, Aerie today announced that it has entered into a $100
million senior secured delayed draw term loan facility (the "credit
facility") with affiliates of Deerfield, pursuant to which Aerie may
borrow up to $100 million in aggregate in one or more borrowings at any
time prior to July 23, 2020. The credit facility matures on July 23,
2024.

The credit facility includes fees upon drawdown of 1.75%, an 8.625%
interest rate on drawn amounts, and annual fees on undrawn amounts of
1.5%. Fees on undrawn amounts accrue but are not payable until July 23,
2020, and no principal payments will be due on drawn amounts, if any,
until July 23, 2020. The credit facility may be terminated by Aerie at
any time for an additional one-time fee of $1.5 million.

The credit facility is available to Aerie for working capital and
general corporate purposes. No amounts were drawn under the credit
facility at closing. The Company believes it has adequate cash, cash
equivalents and investments to support ongoing business operations
through and including the commercialization of RoclatanTM,
and currently has no intention to draw on the credit facility.

"We are delighted that Deerfield has decided to demonstrate its ongoing
support of Aerie. Now that we are an operating company, the $100 million
credit facility provides us with additional financial flexibility as we
continue to grow, as we believe is a customary step for companies at our
stage," said Vicente Anido, Jr., Ph.D., Chairman and Chief Executive
Officer at Aerie.

Armentum Partners served as a financial advisor to Aerie on the credit
facility.

About Aerie Pharmaceuticals, Inc.

Aerie is an ophthalmic pharmaceutical company focused on the discovery,
development and commercialization of first-in-class therapies for the
treatment of patients with open-angle glaucoma, retina diseases and
other diseases of the eye. Aerie's first product, Rhopressa® (netarsudil
ophthalmic solution) 0.02%, a once-daily eyedrop approved by the U.S.
Food and Drug Administration (FDA) for the reduction of elevated
intraocular pressure (IOP) in patients with open-angle glaucoma or
ocular hypertension, was launched in the United States in April 2018. In
clinical trials of Rhopressa®, the most common adverse
reactions were conjunctival hyperemia, cornea verticillata, instillation
site pain, and conjunctival hemorrhage. More information about Rhopressa®,
including the product label, is available at www.rhopressa.com.
Aerie's advanced-stage product candidate, RoclatanTM (netarsudil/latanoprost
ophthalmic solution) 0.02%/0.005%, a fixed-dose combination of Rhopressa® and
the widely-prescribed PGA (prostaglandin analog) latanoprost, achieved
its 3-month primary efficacy endpoint in two Phase 3 registration
trials, Mercury 1 and Mercury 2, and also showed safety and efficacy
throughout 12 months in Mercury 1. Aerie submitted the RoclatanTM New
Drug Application (NDA) in May 2018 and, in July 2018, the FDA set the
PDUFA (Prescription Drug User Fee Act) goal date for the completion of
the FDA's review of the RoclatanTM NDA for March 14, 2019.
Aerie continues to focus on global expansion and the development of
additional product candidates and technologies in ophthalmology,
including for wet age-related macular degeneration and diabetic macular
edema. More information is available at www.aeriepharma.com.

About Deerfield

Deerfield is an investment management firm committed to advancing
healthcare through investment, information and philanthropy. For more
information, please visit deerfield.com

Forward-Looking Statements

This press release contains forward-looking statements for purposes of
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. We may, in some cases, use terms such as "predicts,"
"believes," "potential," "proposed," "continue," "estimates,"
"anticipates," "expects," "plans," "intends," "may," "could," "might,"
"will," "should," "exploring," "pursuing" or other words that convey
uncertainty of future events or outcomes to identify these
forward-looking statements. Forward-looking statements include
statements regarding our intentions, beliefs, projections, outlook,
analyses or current expectations concerning, among other things: our
expectations regarding the commercial launch and sales of Rhopressa®
and RoclatanTM and any future product candidates, if
approved; our commercialization, marketing, manufacturing and supply
management capabilities and strategies; third-party payer coverage and
reimbursement of Rhopressa® and RoclatanTM and any
future product candidates, if approved; the glaucoma patient market size
and the rate and degree of market adoption of Rhopressa® and
RoclatanTM and any future product candidates, if approved, by
eye-care professionals and patients; the timing cost or other aspects of
the commercial launch of Rhopressa® and RoclatanTM
and any future product candidates, if approved; the success, timing and
cost of our ongoing and anticipated preclinical studies and clinical
trials for Rhopressa®, with respect to regulatory approval
outside the United States, and RoclatanTM and any future
product candidates, including statements regarding the timing of
initiation and completion of the studies and trials; our expectations
regarding the effectiveness of Rhopressa®, RoclatanTM
and any future product candidates and results of our clinical trials and
any potential preclinical studies; the timing of and our ability to
request, obtain and maintain FDA or other regulatory authority approval
of, or other action with respect to, as applicable, Rhopressa®,
RoclatanTM and any future product candidates in the
United States, Canada, Europe, Japan and elsewhere, including the
expected timing of, and regulatory and/or other review of, filings for,
as applicable, Rhopressa®, RoclatanTM and any
future product candidates; the potential advantages of Rhopressa®,
RoclatanTM and any future product candidates; our plans
to pursue development of additional product candidates and technologies
in ophthalmology, including development of Rhopressa® and
RoclatanTM for additional indications, our preclinical retina
programs and other therapeutic opportunities; our plans to explore
possible uses of our existing proprietary compounds beyond glaucoma and
ophthalmology; our ability to protect our proprietary technology and
enforce our intellectual property rights; our expectations regarding
collaborations, licensing, acquisitions and strategic operations,
including our ability to in-license or acquire additional ophthalmic
products, product candidates or technologies; and our expectations
regarding anticipated capital requirements and anticipated borrowings
under the credit facility. By their nature, forward-looking statements
involve risks and uncertainties because they relate to events,
competitive dynamics, industry change and other factors beyond our
control, and depend on regulatory approvals and economic and other
environmental circumstances that may or may not occur in the future or
may occur on longer or shorter timelines than anticipated. We discuss
many of these risks in greater detail under the heading "Risk Factors"
in the quarterly and annual reports that we file with the Securities and
Exchange Commission (SEC). In particular, FDA approval of Rhopressa®
does not constitute FDA approval of RoclatanTM, and there can
be no assurance that we will receive FDA approval for RoclatanTM
or for any future product candidates. FDA approval of Rhopressa®
also does not constitute regulatory approval of Rhopressa® in
jurisdictions outside the United States, and there can be no assurance
that Rhopressa® will obtain regulatory approval in other
jurisdictions. Forward-looking statements are not guarantees of future
performance and our actual results of operations, financial condition
and liquidity, and the development of the industry in which we operate
may differ materially from the forward-looking statements contained in
this press release. Any forward-looking statements that we make in this
press release speak only as of the date of this press release. We assume
no obligation to update our forward-looking statements whether as a
result of new information, future events or otherwise, after the date of
this press release.

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