WARREN, N.J. and PORTAGE, Ind., Dec. 14, 2010 /PRNewswire/ -- MonoSol Rx, the developers of PharmFilm® technology and a drug delivery company specializing in proprietary pharmaceutical film products, announced today it secured favorable terms to refinance the company's debt with White Oak Global Advisors, LLC. Under this agreement MonoSol Rx is refinancing $20 million. Specific terms were not disclosed.
MonoSol Rx will use the funds for general corporate purposes, appropriate capital equipment investments and the advancement of its research and development programs that utilize the Company's proprietary PharmFilm® technology to formulate prescription drugs for delivery in an orally-dissolving film dosage form.
Keith J. Kendall, executive vice president and chief financial officer of MonoSol Rx, commented, "This transaction demonstrates not only the strength of the relationship between the company and one of its financial partners, White Oak Global Advisors, but more importantly the continuing financial growth and strength of MonoSol Rx. We have grown revenues at an 80% compound annual growth rate since 2005 and will continue that trend in 2011. We are an EBITDA positive company and will be cash flow and net income positive in 2011 based on our recent FDA approvals and our partners' resultant product launches.
"The refinancing of this debt, at significantly lower cost and with materially improved covenant provisions recognizes the very different financial profile of MonoSol Rx as compared to the time of inception of the loan in 2008. More importantly this transaction provides us with the ability to focus on building our business and focusing our energy on our exciting pipeline of products most immediately PharmFilm Epinephrine, Montelukast, Zolmitriptan and Rizatriptan."
A. Mark Schobel, chief executive officer of MonoSol Rx, commented, "Since entering our original debt financing agreement with White Oak, MonoSol Rx has grown substantially and recently achieved FDA approval and commercial launch of the first two prescription products based on our proprietary PharmFilm technology. The refinancing of our debt and the continuing evolution of the company allow us to focus on keeping a steady stream of products in the development and commercialization process.
"One of those important products is the breakthrough work we have done with our partner Midatech, Ltd. on buccally delivered Nanoinsulin™ PharmFilm. We have had outstanding results in pre-clinical testing, in multiple species, that has conclusively demonstrated the companies' ability to deliver active insulin across the buccal mucosa and meaningfully impact glucose levels in all subject animals. Continuing this work will result in significant benefits to patients with diabetes."
Headquartered in San Francisco with offices in Greenwich, Connecticut, White Oak Global Advisors, LLC is a private specialty finance fund that underwrites and manages senior-secured financings to middle market companies across a broad range of sectors.
About MonoSol Rx
MonoSol Rx is a specialty pharmaceutical company leveraging its proprietary PharmFilm® technology to deliver drugs in films. PharmFilm® is designed to benefit patients by improving the convenience, efficacy, and compliance of new and currently marketed drugs. The Company's leadership in film drug delivery is supported by strong intellectual property, a portfolio of commercialized prescription and over-the-counter (OTC) drug products, a pipeline of prescription formulations based on PharmFilm® technology, and two recent FDA approvals - Zuplenz®, the first approved prescription oral soluble film for the prevention of chemotherapy-induced, radiotherapy-induced, and postoperative nausea and vomiting, and Suboxone® sublingual film, the first combination sublingual film product for the treatment of opioid dependence.
MonoSol Rx's commercialization strategy for all PharmFilm® products is to partner with the innovator, other specialty pharma or leading consumer products companies that can sell-in and manage product sales and marketing. For existing and future partners, PharmFilm® formulations represent revenue-life cycle extensions for products with patent lives that have expired or are approaching expiration. PharmFilm® is also a tool to help sales and marketing partners differentiate in competitive markets while offering unique advantages over drugs dosed by traditional tablets, capsules and orally disintegrating tablets (ODTs). For press releases and other company information visit www.monosolrx.com
SOURCE MonoSol Rx