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BioDelivery Sciences obtains $7 million financing from Clinical Development Capital
By Jennifer Chiou
New York, July 21 - BioDelivery Sciences International, Inc. said it entered into a clinical development and license agreement with Clinical Development Capital LLC to receive $7 million in financing, according to an 8-K filing with the Securities and Exchange Commission.
Starting Feb. 10, 2006, Clinical Development will provide up to $7 million in funding, including a $2 million upfront payment and monthly payments for 12 months for the clinical development of the BioDelivery's BEMA Fentanyl product.
All funds must be repaid to Clinical Development within 60 days of FDA approval of BEMA Fentanyl, a polymer disc that delivers doses of a painkiller for patients with chronic cancer pain.
In return, Clinical Development will receive a milestone fee for the financing as well as royalties based on the net sales of BEMA Fentanyl and a portion of licensing revenue, if any.
BioDelivery Services, a Morrisville, N.C., company, also granted Clinical Development a warrant exercisable for up to 500,000 shares of its stock at $3.50 per share. The warrant expires at the earlier of 5 p.m. ET at two years after FDA approval of the first new drug application relating or the closing of the company's sales or the majority of its assets.
With the agreement, data, information and intellectual property rights concerning BEMA Fentanyl were licensed to Clinical Development.
Clinical Development's obligation to provide funding is conditioned upon the demonstration of technical criteria, initiation of the Phase III trial by a deadline and a contract for the supply of BEMA Fentanyl.
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