RALEIGH, N.C., Feb. 23, 2017 /PRNewswire/ -- BioDelivery
Sciences International, Inc. (NASDAQ: BDSI) announced today that it has entered into a senior credit facility with affiliates of
CRG LP, a healthcare-focused investment firm, to retire its existing credit facility and provide additional working capital for
the company.
The new credit facility consists of $45 million to be drawn at closing and the ability to access
additional funding of up to an aggregate of $30 million in two tranches for a total of $75 million based on the achievement of certain revenue and market capitalization milestones through
September 30, 2018. The term of the loan is six years with the first three years being interest
only.
The upfront proceeds, following payment of the existing credit facility, will be used for general corporate purposes and
working capital. With its initial draw of the CRG loan, together with funds on hand, BDSI believes that under its current
operating plan, it will have sufficient capital into the second half of 2018.
"We are pleased to have the support of such a well-respected firm like CRG and the confidence they have shown in our business
strategy and in the market opportunities that BELBUCA® and BUNAVAIL® represent," said Dr. Mark A.
Sirgo, President and Chief Executive Officer of BDSI. "This financing, along with our significantly decreased
burn-rate as a result of our newly added BELBUCA revenue, strengthens BDSI's balance sheet and extends our cash runway
significantly. The proceeds will support our commercialization efforts particularly behind BELBUCA and allow us to focus on
business options involving our commercial portfolio that could potentially bring enhanced value to our shareholders."
"BDSI is in a unique position, offering important solutions to address two major and growing healthcare problems – addiction
and chronic pain," said Luke Düster, Managing Director at CRG. "CRG looks forward to working with BDSI as they continue to
build their business with products such as BELBUCA and BUNAVAIL, which offer distinct advantages over other treatments, as well
as their product pipeline. Following our standard, extensive due diligence, we believe BDSI's portfolio has strong potential and
that access to this credit facility will help build value."
Cantor Fitzgerald & Co. acted as the exclusive financial advisor to BDSI in this transaction.
For more information regarding the terms and conditions of the loan, please refer to BDSI's Current Report on Form 8-K to be
filed with the Securities and Exchange Commission.
About CRG
CRG is a premier healthcare-focused investment firm with more than $3.0 billion of assets under
management across more than 45 portfolio companies. The firm seeks to commit between $20 to $300
million in each investment across the healthcare spectrum, including: medical devices, biopharmaceuticals, tools &
diagnostics, services and information technology. CRG provides growth capital in the form of long-term debt and equity to support
innovative, commercial-stage healthcare companies that address large, unmet medical needs. The firm partners with public
and private companies to provide flexible financing solutions and world-class support to achieve exceptional growth objectives
with minimal dilution. CRG maintains offices in Boulder, Houston and New York. For more information, please visit www.crglp.com.
About BioDelivery Sciences International
BioDelivery Sciences International, Inc. (NASDAQ: BDSI) is a specialty pharmaceutical company with a focus in the areas of
pain management and addiction medicine. BDSI is utilizing its novel and proprietary BioErodible MucoAdhesive
(BEMA®) technology and other drug delivery technologies to develop and commercialize, either on its own or in
partnership with third parties, new applications of proven therapies aimed at addressing important unmet medical needs.
BDSI's development strategy focuses on the utilization of the FDA's 505(b)(2) approval process. This regulatory pathway
creates the potential for more timely and efficient approval of new formulations of previously approved therapeutics.
BDSI's area of focus is the development and commercialization of products in the areas of pain management and addiction. These
are areas where BDSI believes its drug delivery technologies and products can best be applied to address critical unmet medical
needs. BDSI's marketed products and those in development address serious and debilitating conditions such as breakthrough
cancer pain, chronic pain, painful diabetic neuropathy and opioid dependence. BDSI's headquarters is in Raleigh,
North Carolina.
BUNAVAIL® (buprenorphine and naloxone) buccal film (CIII) and BELBUCA® (buprenorphine) buccal film
(CIII) are marketed in the U.S. by BioDelivery Sciences. ONSOLIS ® (fentanyl buccal soluble film) (CII) is
licensed in the U.S. to Collegium Pharmaceutical pursuant to the U.S. licensing and development agreement between BDSI and
Collegium. For full prescribing information and important safety information on BDSI products, including BOXED WARNINGS for
ONSOLIS, please visit www.bdsi.com where the
Company promptly posts press releases, SEC filings and other important information or contact the Company at (800)
469-0261. For full prescribing and safety information on BELBUCA, please visit www.belbuca.com and for full prescribing and safety information
on BUNAVAIL, please visit www.bunavail.com.
Cautionary Note on Forward-Looking Statements
This press release and any statements of employees, representatives and partners of BioDelivery Sciences International, Inc.
(the "Company") related thereto contain, or may contain, among other things, certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks
and uncertainties. Such statements may include, without limitation, statements with respect to the Company's plans,
objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "will,"
"could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "potential" or similar
expressions. These statements are based upon the current beliefs and expectations of the Company's management and are
subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and
Exchange Commission. Actual results (including, without limitation, the impact of the Company's new debt facility described
herein) may differ significantly from those set forth in the forward-looking statements. These forward-looking statements
involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the
Company's control). The Company undertakes no obligation to publicly update any forward-looking statements, whether as a
result of new information, future presentations or otherwise, except as required by applicable law.
BDSI®, BEMA®, ONSOLIS®, BUNAVAIL® and BELBUCA® are registered
trademarks of BioDelivery Sciences International, Inc. The BioDelivery Sciences and BUNAVAIL logos are trademarks owned by
BioDelivery Sciences International, Inc. All other trademarks and tradenames are owned by their respective owners.
© 2017 BioDelivery Sciences International, Inc. All rights reserved.
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SOURCE BioDelivery Sciences International, Inc.