Unilife, a developer and supplier of injectable drug delivery systems, announced that it received an incremental $10m under its debt financing agreement with OrbiMed.
Unilife was originally eligible to receive two tranches of $10 million in each of December 2014 and June 2015, in addition to the upfront payment of $40 million that OrbiMed funded in March 2014. To support Unilife’s continued business expansion and growing customer demand for its products and services, OrbiMed accelerated the timing of the remaining financing tranches.
The first remaining tranche was funded on October 1, 2014, and the second remaining tranche is anticipated to be funded shortly thereafter.
Mr. Alan Shortall, Chairman and Chief Executive of Unilife said: "We are pleased to have further strengthened our partnership with OrbiMed, the world’s largest dedicated healthcare investor. OrbiMed’s investment reflects their strong confidence in Unilife’s future commercial success. We are confident that this investment, together with cash receipts from existing and upcoming customer programs, will meet our cash requirements for fiscal 2015," Mr. Shortall concluded.
As part of the amendment, Unilife’s cash receipt requirement for calendar year 2014 has been reduced to $20 million, and an incremental requirement of $20 million has been introduced for the first half of calendar year 2015. The annual cash receipt requirement for future calendar years remains the same as in the original agreement.
Both parties have agreed that OrbiMed will receive an increase in royalty payments, as well as certain other economic concessions. No equity or warrants were or will be issued as part of this amended agreement.