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Santarus Obtains $20 Million Revolving Line of Credit.


SAN DIEGO San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay.  -- Santarus, Inc. (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
:SNTS SNTS Society for New Testament Studies
SNTS Standalone NMD Training System
), a specialty pharmaceutical company focused on therapies for gastrointestinal diseases and disorders, today announced that it has obtained from Comerica Bank a three-year $20 million revolving line of credit Revolving line of credit

A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years.
 for working capital needs and general corporate purposes. Santarus will make interest-only payments on any draws from the line of credit, and all principal drawn during the term of the loan facility is due and payable at the maturity date, which is July 28, 2009. The line of credit is secured by the Company's assets, excluding intellectual property, and contains affirmative and negative covenants, including financial covenants requiring Santarus to maintain certain levels of cash and investments and remaining months' liquidity.

"With this commercial line of credit, we expect to have greater financial flexibility in managing our cash balances to support our business objectives, including the continued growth of the ZEGERID(R) brand," said Debra P. Crawford, senior vice president and chief financial officer of Santarus. "We believe our ability to secure this loan facility from a large, well-respected business bank like Comerica reflects our continued progress as a commercial company."

About Santarus

Santarus, Inc. is a specialty pharmaceutical company focused on acquiring, developing and commercializing proprietary products that treat gastrointestinal diseases and disorders and enhance the quality of life for patients. The company's products are immediate-release formulations of omeprazole omeprazole /omep·ra·zole/ (o-mep´ra-zol) an inhibitor of gastric acid secretion used in the treatment of dyspepsia , gastroesophageal reflux disease, disorders of gastric hypersecretion, and peptic ulcer, including that associated with , a widely prescribed proton pump inhibitor proton pump inhibitor
n.
A class of drugs that inhibit gastric acid secretion by interfering with the movement of hydrogen ions across cell membranes and are used mainly to treat peptic ulcers, gastroesophageal reflux disease, and esophagitis.
. The company's marketed products include ZEGERID Capsules (launched in late March 2006) and ZEGERID Powder for Oral Suspension. Santarus received U.S. Food and Drug Administration approval for its third dosage form A dosage form is the physical form of a dose of medication, such as a capsule or injection. The route of administration is dependent on the dosage form of a given drug. , ZEGERID with Magnesium Hydroxide magnesium hydroxide: see milk of magnesia.  Chewable Tablets, in March 2006. More information about Santarus is available on the company's Web site at www.santarus.com.

Santarus cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by Santarus that any of its plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in Santarus' business, including, without limitation: the potential for any debt that Santarus incurs under the line of credit to impair its ability to obtain additional financing in the future; Santarus' ability to satisfy the conditions to borrowing under the line of credit; Santarus' ability to comply with the covenants under the line of credit; the potential for an event of default under the line of credit, and the corresponding risk of acceleration of repayment and potential foreclosure on the assets pledged to secure the line of credit; difficulties or delays in development, testing, manufacturing and marketing of Santarus' products; and other risks detailed in Santarus' prior press releases as well as in public periodic filings with the Securities and Exchange Commission.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and Santarus undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor Safe Harbor

1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.

2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive.
 provisions of Section 21E of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995.

Santarus(R) and ZEGERID(R) are trademarks of Santarus, Inc.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Aug 1, 2006
Words:555
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