EKR THERAPEUTICS RAISES OVER $145 MILLION IN SUPPORT OF GROWTH
Specialty Pharma Company Sees Recent Product Acquisitions Bolstering Its 2008 Revenue Base 10-Fold
Cedar Knolls, N.J., (March 10, 2008) – EKR Therapeutics, Inc., a specialty pharmaceutical company focused on acquiring, commercializing and maximizing the potential of proprietary acute-care products, announced it has successfully completed the private placement of $50 million in Series D equity while also securing $95 million in senior debt.
The equity funding round was led by new investors MPM Capital and LLR Partners. Also participating were prior investors Quaker BioVentures and the Garden State Life Sciences Venture Fund managed by Quaker, as well as original institutional investors NewSpring Capital and ESP Equity Partners. The debt financing is being provided by GE Healthcare Financial Services.
(EDA Note: The New Jersey Economic Development Authority is an investor in the Garden State Life Sciences Venture Fund.)
As part of the equity financing, Steven St. Peter, M.D., General Partner at MPM Capital, and Scott A. Perricelli, Partner at LLR Partners, have joined the EKR board of directors. In turn, the board has expanded to seven members including five non-executive and two executive directors.
“The support of such a premier group of investors and lenders reflects a vote of confidence in EKR’s business plan and is a testimony to the Company’s past successes and future prospects,” said Howard Weisman, EKR’s chairman and CEO. “Since initiating operations less than two years ago, we have built a solid commercial organization with several on-the-market products and our own sales force. We are well positioned to enter the next stage of growth and to realize our goal of becoming the pre-eminent provider of specialty acute-care products.”
Richard DeSimone, EKR director and CFO, noted, “Our ability to access new, quality sources of capital and garner additional support from existing, leading healthcare investors is highly gratifying. Additionally, with today’s announced financing transactions, plus cash on hand, we have significantly enhanced EKR’s flexibility to fuel the growth of our on-going operations while pursuing strategic initiatives to bolster that growth.”
A portion of the financing proceeds will be utilized to pursue acquisition candidates for EKR’s portfolio of specialty acute-care products. That portfolio was recently enlarged by the first quarter 2008 acquisitions of the Cardene® franchise, including intravenous and oral formulations of this antihypertensive product, and Retavase®, a drug for the management of acute myocardial infarction. Other product offerings from EKR include DepoDur®, an injectable morphine acquired in August 2007 for the management of post operative pain, and Gelclair®, a bioadherent oral gel acquired in June 2006 for the treatment of oral mucositis.
“Through the application of our acquisition strategy, we have greatly enriched our product mix in the past few months and, correspondingly, our 2008 revenue base has been expanded by a factor of about ten,” said Weisman. “Moreover, even if we exclude the potential for other product acquisitions in 2008, we foresee significant opportunities for organic growth off of this larger base. To this end, we plan to build upon and leverage the strengths of our field force to drive overall sales and maximize the synergies expected for our enlarged product portfolio.”
About EKR Therapeutics
EKR Therapeutics is a privately held specialty pharmaceutical company that has brought
together a highly seasoned team of industry professionals. The Company focuses on the
acquisition, development and commercialization of proprietary products to enhance patient quality-of-life in the acute setting, including cardiovascular, pain management and oncology supportive care medications. From its inception in late 2005, EKR has been organized to be a class leader in commercializing products to address unmet and under-satisfied medical needs or to otherwise enhance the therapeutic value of acute-care prescription products. EKR’s goal is to be the pre-eminent provider of specialty acute-care products, backed by a commitment to excellence in customer service and medical education programs. For additional information about EKR visit the Company’s website at www.ekrtx.com.