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MOUNTAIN VIEW, Calif., March 26, 2013 (GLOBE NEWSWIRE) -- VIVUS, Inc. (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 will be based on scheduled quarterly amounts. These payments may be lower than the scheduled amounts as they are subject to a capped percentage of future net sales of Qsymia
® (phentermine and topiramate extended-release) capsules CIV.
Qsymia is approved in the U.S. and is indicated as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kg/m
2 or greater (obese) or 27 kg/m
2 or greater (overweight) in the presence of at least one weight-related medical condition such as high blood pressure, type 2 diabetes, or high cholesterol.
The effect of Qsymia on cardiovascular morbidity and mortality has not been established. The safety and effectiveness of Qsymia in combination with other products intended for weight loss, including prescription and over-the-counter drugs, and herbal preparations, have not been established.