EyePoint Pharmaceuticals (NASDAQ:EYPT) has secured a debt facility of up to $60-million from CR Group, a healthcare-focused investment firm, to retire existing debt and provide additional working capital to support recent and anticipated product launches.
The new financing consists of an initial draw of $35-million, of which about $23-million will repay principal, prepayment fees and other costs associated with a secured term loan obtained from SWK Funding in connection with the acquisition of Icon Biosciences.
EyePoint also has an option to borrow an additional $15-million cprior to June 30, 2019. An additional $10-million will be available by March 31, 2020, subject to the company achieving certain sales milestones from its two commercial products. During the facility’s five-year term, the company is required to make only interest payments.
The company recently launched YUTIQ, a three-year, micro-insert for the treatment of chronic non-infectious uveitis affecting the posterior segment of the eye. DEXYCU, which the company plans to launch in the first quarter of 2019, is a single dose intracameral steroid administered after ocular surgery for the treatment of postoperative inflammation.
“We hope this is the start of a long-term relationship as we partner with EyePoint and the company expands its ophthalmic product portfolio in the future,” Luke Duster, a CRG partner, said in a statement.
David Price, CFO of EyePoint, said the financing illustrates the company’s confidence in the trajectory of its product launch plans for YUTIQ and DEXYCU, and its continued growth.
“The new debt facility provides us with approximately $11.4-million in additional working capital after repaying our existing debt, and, importantly, provides us with significant funding options for the continued support of our two product launches,” he added.
