Deerfield Management Provides $100 Million Credit Facility to Aerie Pharmaceuticals to Advance Ophthalmic Drug Development

VCBeat (WeChat Official Account: vcbeat) has learned from foreign media reports that ophthalmic pharmaceutical company Aerie Pharmaceuticals (NASDAQ: AERI) recently announced an amendment to its existing credit agreement with Deerfield Management Company (Deerfield).

The amendment adds a $100 million priority delayed-draw term loan (additional credit facility), under which Aerie may borrow in one or more tranches at any time on or before July 23, 2020, up to an aggregate principal amount of $100 million. Funds drawn under the additional credit facility will be repaid in installments beginning on July 20, 2023, with all amounts due by July 23, 2024. With this additional credit facility, Aerie now has $200 million in available funding. According to the company’s financial statements released as of December 31, 2018, the addition of this credit facility, combined with $203 million in cash and cash equivalents, brings Aerie’s total liquidity in 2019 to over $400 million.

Under normal circumstances, Aerie may draw additional credit facilities as needed (e.g., for working capital or business development). However, Aerie believes that it currently has sufficient cash and cash equivalents to support its ordinary business operations (including the production and sales of Rocklatan) and is not currently utilizing any additional credit facilities.

Aerie, a former subsidiary of Duke University Medical Center, is a publicly traded biotechnology company. Founded in 2005, the company is headquartered in Bridgewater, New Jersey, USA, with its R&D facilities located in North Carolina. Aerie focuses on the development and commercialization of novel therapeutics for open-angle glaucoma, retinal diseases, and other ophthalmic conditions, including age-related wet macular degeneration and diabetic macular edema, with its flagship products being glaucoma treatments. The company is continuously expanding its global operations.

Aerie’s first product, Rhopressa (0.02% netarsudil ophthalmic solution), is an FDA-approved eye drop indicated for the reduction of intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. The product was launched in the United States in April 2018. In clinical trials of Rhopressa, the most common adverse reactions were conjunctival hyperemia, corneal verticillata, instillation site pain, and conjunctival hemorrhage.

Aerie’s second intraocular pressure-lowering product, Rocklatan (a fixed-dose combination ophthalmic solution of 0.02% netarsudil and 0.005% latanoprost), is the only available fixed-dose combination eye drop containing Rhopressa and the prostaglandin analog latanoprost on the market. The product received FDA approval and was launched in the United States in the second quarter of 2019. In clinical trials for Rocklatan, the most common adverse reactions were similar to those observed with Rhopressa.

“Dr. Vicente Anido, Chairman and Chief Executive Officer of Aerie, stated, ‘We once again thank Deerfield for its continued support of Aerie. The $400 million in liquidity is a vital resource that can be utilized for the company’s research and development, sales, and expansion efforts, creating opportunities for our commercial growth.’”

Deerfield is an investment management firm dedicated to advancing the healthcare industry through investing, information gathering, and philanthropy. Founded in 1994, the company primarily invests in public healthcare companies and currently manages over $8 billion in assets. Deerfield’s investments span the entire healthcare spectrum, ranging from early-stage pharmaceutical research companies to mature healthcare service and medical device firms.

Deerfield’s research institute specializes in providing Deerfield with objective, scientifically rigorous primary market intelligence methodologies. Each year, it collaborates with thousands of professionals through surveys, interviews, and consultations to understand and track complex issues within the healthcare industry.

(Compiled by Tang Lulu)