RALEIGH, N.C., July 8, 2013 /PRNewswire/ -- BioDelivery Sciences International, Inc. (Nasdaq: BDSI) announced today that it has secured a $20.0 million senior secured loan from an affiliate of MidCap Financial, LLC.
The proceeds of the loan strengthens the cash position as BDSI moves toward the submission of a New Drug Application (NDA) for BUNAVAIL and the completion of the two Phase 3 clinical studies for BEMA Buprenorphine for chronic pain, the latter of which would result in milestone payments to BDSI from its commercial partner, Endo Health Solutions.
"This transaction strengthens our available capital resources as we proceed through the final steps to submitting our NDA for BUNAVAIL for the treatment of opioid dependence and complete our commercial assessment regarding partnering the asset or leading the effort at BDSI," said Dr. Mark A. Sirgo, President and Chief Executive Officer. "In addition, this loan allows us to aggressively allocate immediate financial resources against our product pipeline, including our clinical program for Clonidine Topical Gel for the treatment of painful diabetic neuropathy, which we are targeting for Phase 2B initiation by the end of this year and data by the end of 2014."Dr. Sirgo continued, "We see this as a non-dilutive way to strengthen our balance sheet as we head into what could prove to be the most prolific time in BDSI's history." The secured loan has a term of 36 months with interest only payments for the first 6 months. The interest rate is 8.45% plus a LIBOR floor of 0.5%. Under the terms of loan, MidCap was also issued a warrant to purchase 357,143 shares of BDSI common stock with an exercise price of $4.20, the 20-day volume-weighted average share price of BDSI's common stock prior to closing of the loan. Additional details regarding this transaction are expected to be made available in a Current Report on Form 8-K to be filed by BDSI with the Securities and Exchange Commission.