Growth Capital Allows Alimera to Fulfill Its Milestone Obligation Triggered by FDA Approval of ILUVIEN®
ATLANTA, Sept. 30, 2014 /PRNewswire/ — Alimera Sciences, Inc. ALIM, -3.10%(Alimera), a pharmaceutical company that specializes in the research, development and commercialization of prescription ophthalmic pharmaceuticals, announced today that it has received a $25 million advance from Hercules Technology Growth Capital, Inc. HTGC, -0.08% (Hercules). The payment is the second and final advance under the Loan and Security Agreement that Alimera’s subsidiary in the United Kingdom, Alimera Sciences Limited, entered into with Hercules in April of this year. Receipt of the $25 million was conditional on the approval, on or before October 31, 2014, of ILUVIEN® by the U.S. Food and Drug Administration (FDA). On September 26, 2014, the FDA approved ILUVIEN® for the treatment of diabetic macular edema (DME) in patients who have been previously treated with a course of corticosteroids and did not have a clinically significant rise in intraocular pressure (IOP).
Alimera will use the advance to fund a $25 million milestone payment owed to the licensor of certain intellectual properly as a result of the recent FDA approval of ILUVIEN®.
Interest on outstanding borrowings under the term loan is payable at the greater of 10.90%, or 7.65% plus the prime rate per annum. The term loan, which matures on May 1, 2018, provides for interest only payments thru November 30, 2015, followed by 30 equal monthly payments of principal and interest. The interest-only period may be extended to May 31, 2017, followed by 12 equal monthly payments of principal and interest, if certain revenue thresholds are reached.