September 9, 2014
By Krystle Vermes, BioSpace.com Breaking News Staff
Today, the Deerfield Management Company announced that it will invest $125 million in Aerie Pharmaceuticals, Inc. through senior secured convertible notes. This will provide Aerie with the capital it needs for the continued advancement of development activities pertaining to its clinical-stage product pipeline.
“We are excited by the opportunity to work with Aerie’s strong management team and to contribute to the advancement of a leading scientific platform in ophthalmology,” commented William Slattery, Partner, Deerfield Management.
Additionally, the money will be put toward general corporate purposes and strategic growth opportunities. Under the terms of financing, the notes will be secured and accrue interest at a rate of 1.75 percent per annum until maturity in September 2021.
“We believe this level of financing at favorable terms will be significantly beneficial to Aerie,” said Vicente Anido, Jr., Ph.D., Chairman and Chief Executive Officer at Aerie. “We now have adequate financial resources to complete all of our known clinical requirements for Rhopressa™ and Roclatan™, and to commercialize Rhopressa™ later in 2017 if our trials are successful. This financing also provides us with flexibility for potential strategic product in-licenses or acquisitions as we continue to build Aerie into what we believe may become a major ophthalmic pharmaceutical company. We are deeply appreciative of Deerfield’s confidence in Aerie’s product candidates and growth prospects.”
The notes are convertible at a conversion price that represents a 30 percent premium over the closing price of the Aerie stock on Sept. 8, 2014.
Work on Rhopressa™ Continues
On Sept. 3, Aerie Pharmaceuticals announced that on Aug. 29, it had begun administering doses of Rhopressa™ to patients enrolled in its Phase 3 registration trial in Canada. The once-a-day treatment is a triple-action eye drop that is designed to reduce intraocular pressure in people who have glaucoma or ocular hypertension.
“Our Rhopressa™ study in Canada is the third and final trial to commence in our Phase 3 program, which continues to show strong momentum and interest from the ophthalmology community,” said Vicente Anido, Jr., Ph.D., Chairman and Chief Executive Officer at Aerie. “This trial will supplement the safety studies required to file our NDA in the United States, and potentially result in sufficient safety data for submission to the European regulatory authorities for product approval in Europe. Further, it establishes our name and presence in Canada, which could become an important market for Aerie in the future.”
Aerie predicts that 1,300 patients will enroll in three Phase 3 trials of Rhopressa™.
