• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Drug Delivery Business

  • Clinical Trials
  • Research & Development
  • Drug-Device Combinations
  • FDA
  • Pharmaceuticals
  • Policy

Unilife raises $60M through debt financing, shares soar

March 13, 2014 By drugdelivery

Unilife raises $60M through debt financing

Pennsylvania device maker Unilife (NSDQ:UNIS) raised $60 million through a debt financing agreement with OrbiMed Advisors, news of which sent UNIS shares soaring today.

Unilife plans to use the funds to support commercial efforts tied to "several large contracts" that Unilife holds with its customers.

Unilife secured $40 million at the close of the deal, with the rest coming in a pair of payments in December 2014 and June 2015. The decision to take the funds in tranches allows the company to minimize its interest payments, chairman & CEO Alan Shortall said in prepared remarks.

The terms of the financing provide for 6 years of interest-only payments at a rate of 10.25% per annum. The principal is slated for repayment by March 12, 2020, according to a company statement.

OrbiMed, a healthcare-only investment group, will also receive tiered royalty payments calculated based on net sales, maxing out at 2.75% of annual net revenue. Unilife retains the option to buy out the royalty agreement, the company said.

"We believe this agreement represents a significant endorsement of Unilife," Shortall said. "In particular, I believe OrbiMed’s decision to accept a small share of our future net sales highlights their confidence in our business model and future growth."

News of the financing sent Unilife shares skyrocketing today. UNIS shares were up more than 15%, trading at $5 as of about 3:31 p.m. The stock has gained 11% since the start of the year.

Filed Under: Drug-Device Combinations Tagged With: OrbiMed, Unilife Corp.

IN CASE YOU MISSED IT

  • Senseonics stock is up as it sticks by revenue guidance
  • MedAlliance wins second FDA IDE nod for drug-coated balloon
  • Wells Fargo downgrades Tandem amid rise of automated insulin delivery competition
  • FDA approves first targeted infusion therapy for HER2-low breast cancer
  • Abbott, WeightWatchers partner on diabetes care

Primary Sidebar

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Need Drug Delivery Business News in a minute? We Deliver!
Drug Delivery Enewsletters get you caught up on all the mission critical news you need in med tech. Sign up today.

Signup for the newsletter

Footer

Drug Delivery Business News Logo

MassDevice Medical NETWORK

MassDevice
DeviceTalks
Medical Tubing & Extrusion
Medical Design & Outsourcing
MedTech100 Index
Drug Discovery & Development
Pharmaceutical Processing World
Medical Design Sourcing
R&D World

DRUG DELIVERY BUSINESS NEWS

Subscribe to Drug Delivery’s E-Newsletter
Advertise with us
About
Contact us
Privacy
Listen to our Weekly Podcasts
Add us on FacebookFollow us on TwitterConnect with us on LinkedIn

Copyright © 2022 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Advertise | Privacy Policy | RSS