RICHMOND, Va., April 7, 2014 /PRNewswire/ -- Kaleo (formerly Intelliject) today announced that it has entered into a $150 million debt facility with PDL BioPharma (NASDAQ: PDLI) to enable kaleo to support commercialization of EVZIO™(naloxone hydrochloride injection) and development of key pipeline products. Under the financing, PDL provided $150 million in cash at closing and will receive interest on the principal outstanding. The note is backed by royalty payments on kaleo's first product (Auvi-Q™ in the US and Allerject™ in Canada) ( www.auvi-q.com) and a portion of the net sales on its second product (EVZIO™)( www.evzio.com). Once the note is repaid, kaleo will resume receiving 100% of all product royalties and net sales.
The funds will enable kaleo to support the commercialization of EVZIO (approved by the FDA on April 3, 2014), to invest in the development of pipeline products and repay existing debt. EVZIO is intended for the emergency treatment of known or suspected opioid overdose, as manifested by life-threatening respiratory depression.
Kaleo is a pioneer in life saving products that provide for peace of mind that patients can carry in their pockets. Kaleo products are designed to become part of a patient's everyday life – always there, but invisible until needed. The products are simple to use and use voice and visual cues to assist a patient through the correct drug administration process.
"We believe patients and caregivers are experts on how their medical condition impacts their lives, and they are an integral part of our product development process. As we begin the next phase of our company's growth, we are pleased to have the additional support of our collaboration with PDL BioPharma," said Spencer Williamson, President and CEO of kaleo."Kaleo's business model and patient driven product development process is unique. Auvi-Q and EVZIO are novel and exciting products and we believe that kaleo has additional promising products in development," stated John McLaughlin, President and CEO of PDL BioPharma. MTS Securities, LLC, an affiliate of MTS Health Partners, acted as financial advisor to kaleo in this transaction.