KemPharm secures $60 million in financing from Deerfield Management

By Lisa Kerner

Charlotte, N.C., June 3 - KemPharm, Inc. arranged a $10 million senior secured convertible note and a $50 million senior secured term debt facility with Deerfield Management Co., according to a company announcement.

Deerfield funded $10 million of the convertible notes and $15 million of the term loan at the initial closing of the transaction, according to the news release.

KemPharm may access the remaining $35 million of the term debt upon completion of certain milestones.

The debt facility provides KemPharm with capital to fund its clinical and regulatory operations and to advance its lead product candidate, KP201, which is being developed as an abuse-deterrent opioid analgesic.

"This financing provides KemPharm with the near-term capital required to advance our corporate and clinical goals, while providing us with additional flexibility to pursue opportunities that could further propel the value potential of the company," said KemPharm chief financial officer Gordon K. "Rusty" Johnson in the news release.

KemPharm is a biopharmaceutical company focused on the discovery and development of new chemical entities. The company is based in Coralville, Iowa.

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