SAN DIEGO--(BUSINESS WIRE)--Santarus, Inc. (NASDAQ: SNTS - News), a specialty biopharmaceutical company, today announced that it has extended the maturity date of its $25 million revolving line of credit with Comerica Bank from July 11, 2011 to July 11, 2013. Santarus makes interest-only payments on any draws from the line of credit, and all principal drawn during the term of the loan facility is due and payable at the maturity date. Santarus has the option of paying interest on outstanding indebtedness under the credit facility at Comerica’s prime rate plus one-half percent (0.5%) or the LIBOR rate plus three percent (3.0%).
Santarus entered into the line of credit agreement with Comerica in July 2006 and amended and restated the agreement in July 2008. The line of credit, which is used for working capital needs and other corporate purposes, is secured by Santarus’ assets, excluding intellectual property, and contains affirmative and negative covenants, including financial covenants requiring Santarus to maintain certain levels of cash and investments and liquidity. Santarus has drawn $10 million on the line of credit to date.
“The Comerica line of credit supports our corporate objectives by providing a source of non-dilutive capital,” said Debra P. Crawford, senior vice president and chief financial officer of Santarus. “Comerica Bank has proven an excellent business partner and we are pleased to extend this relationship as we further our business objectives.”
About Santarus
Santarus, Inc. is a specialty biopharmaceutical company focused on acquiring, developing and commercializing proprietary products that address the needs of patients treated by gastroenterologists, endocrinologists and other physicians. The company’s current commercial efforts are focused on GLUMETZA® (metformin HCl extended release tablets), which is indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes. Santarus is also developing two late-stage GI product candidates, budesonide MMX® and rifamycin SV MMX®, for the U.S. market. Budesonide MMX is being investigated in a Phase III clinical program for the induction of remission of mild or moderate active ulcerative colitis. Santarus began Phase III clinical testing of rifamycin SV MMX in patients with travelers’ diarrhea in the second quarter of 2010. More information about Santarus is available on the company’s website at www.santarus.com.
Santarus cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by Santarus that any of its plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in Santarus’ business, including, without limitation: the potential for any debt that Santarus incurs under the line of credit to impair its ability to obtain additional financing in the future; Santarus’ ability to satisfy the conditions to borrowing under the line of credit; Santarus’ ability to comply with the covenants under the line of credit; the potential for an event of default under the line of credit, and the corresponding risk of acceleration of repayment and potential foreclosure on the assets pledged to secure the line of credit; difficulties or delays in development, testing, manufacturing and marketing of, and maintaining regulatory approvals for, Santarus’ products; and other risks detailed in Santarus’ prior press releases as well as in public periodic filings with the Securities and Exchange Commission.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and Santarus undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
Santarus® is a registered trademark of Santarus, Inc. GLUMETZA® is a registered trademark of Biovail Laboratories International S.r.l. licensed exclusively in the United States to Depomed, Inc. MMX® is a registered trademark of Cosmo Technologies Limited.
