ESP Pharma Secures $57 Million in a Senior Credit Facility, Further Strengthening Its Prospects for Continued Rapid Growth.Business Editors/Health/Medical Writers BIOWIRE2K EDISON, N.J.--(BUSINESS WIRE)--Oct. 8, 2003 ESP (1) (Enhanced Service Provider) An organization that adds value to basic telephone service by offering such features as call-forwarding, call-detailing and protocol conversion. Pharma, Inc., a specialty pharmaceutical company focused on the acquisition, marketing, and late-stage development of acute-care therapeutics, today announced it has closed a $57 million senior credit facility with a syndicate of lenders. This, in combination with prior Series A and B funding rounds, represents an aggregate $105 million raised by ESP Pharma to implement and enhance the rapid growth momentum the Company has experienced since beginning operations less than 18 months ago. The $57 million senior credit facility was co-arranged by GE Healthcare Financial Services, a unit of General Electric Corporation (NYSE NYSE See: New York Stock Exchange :GE) and Fleet Securities, Inc., an affiliate of FleetBoston Financial (NYSE:FBF FBF Forearm Blood Flow FBF Frankfurt Book Fair FBF Feedback Form FBF Frame by Frame (animation technique) FBF FleetBoston Financial Corporation (stock symbol) FBF Fundamental Baptist Fellowship ). The credit facility was syndicated to three lenders, led by GE Healthcare Financial Services and including Fleet National Bank and Royal Bank of Canada Bank of Canada Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. (NYSE:RY). ESP Pharma, a profitable and cash-flow positive company, said proceeds from this credit facility will be used for general corporate purposes, including working capital needs, refinancing higher cost debt and to provide liquidity to facilitate future acquisitions in support of the Company's Buy and Build, Search and Develop strategy. This strategy was first applied by ESP Pharma in May 2002 when the Company acquired US rights to Cardene(R) IV and three other products from Wyeth (NYSE:WYE). Cardene IV, ESP Pharma's lead product, is a patent protected intravenous preparation of nicardipine for hypertension. In the ensuing months, ESP Pharma established its own hospital sales force, acquired two late-stage product development programs, entered into international business alliances and more recently, in June of this year, acquired from Orphan Medical (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ORPH) worldwide rights to IV Busulfex(R), an acute-care specialty oncology drug approved in the US and several foreign markets. "Our Company is experiencing remarkable growth," said John T. Spitznagel, ESP Pharma's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "In the past 12-months we deployed and essentially doubled the size of our hospital sales force to over 40 reps across the US and Canada. Additionally, annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales of Cardene IV have increased approximately fivefold fivefold Adjective 1. having five times as many or as much 2. composed of five parts Adverb by five times as many or as much Adj. 1. since we acquired the product and revitalized its promotional support." Andrew J. Einhorn, ESP Pharma's CFO See Chief Financial Officer. , who was instrumental in obtaining this financing, added "The closing of this credit facility places ESP on firm financial footing to accelerate our growth. With our existing product portfolio and 2003 acquisitions, including IV Busulfex, gross 2003 revenues are expected to exceed $60 million, nearly a fourfold increase from $16 million achieved during eight months of operations ended Dec. 31, 2002." About ESP Pharma, Inc. ESP Pharma is committed to Excellence in Specialty Pharmaceuticals and is dedicated to helping physicians improve patient outcomes in the acute-care setting. Under the leadership of a highly experienced and strong management team, the Company focuses on its Buy and Build, Search and Develop strategy of identifying opportunities to selectively acquire and enhance the market potential of novel, commercially available therapeutics and late-stage development drugs to fulfill unmet market needs. Opportunities for ESP Pharma to acquire product marketing, manufacturing, and development rights are the result of several factors, including industry consolidation and the fact that many existing and developmental drugs cannot meet the increasing revenue thresholds of large pharmaceutical companies. ESP Pharma, a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. , has investment support from leading healthcare venture capital and private equity firms: Domain Associates, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (http://www.domainvc.com/), Apax Partners, Inc. (http://www.apax.com), New Enterprise Associates (http://www.nea.com), and Thoma Cressey/Equity Partners (http://www.thomacressey.com/). Additional information about ESP Pharma is available on the internet at http://www.ESPPharma.com |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion