BioDelivery Sciences International, Inc.
) recently secured a loan from partner, MidCap Financial, LLC.
Through this agreement, BioDelivery Sciences has ensured a debt
financing of $20 million in the form of a senior secured loan.
The senior secured loan will mature after 3 years with the
interest payable only for the first 6 months. MidCap Financial
has also issued a warrant to purchase 357,143 shares of
BioDelivery Sciences common stock under the terms of the
agreement. The exercise price of these shares is $4.20, which is
the 20-day volume-weighted average share price of BioDelivery
Sciences' common stock before the loan expires.
The debt financing will significantly strengthen BioDelivery
Sciences' cash position. The company has a series of pipeline
events lined up, including the New Drug Application (NDA)
submission for Bunavail.
Last month BioDelivery Sciences completed a successful pre-NDA
meeting with the Food and Drug Administration (FDA) for
Bunavail's approval for the maintenance treatment of opioid
dependence. The company plans to seek US approval of Bunavail for
the above indication in mid-summer this year. BioDelivery
Sciences expects Bunavail to generate peak sales of over $250
Moreover, BioDelivery Sciences also expects to complete two phase
III studies on BEMA buprenorphine, being developed for the
treatment of chronic pain. The company has a license and
development agreement with
Endo Health Solutions Inc.
) for BEMA buprenorphine. The completion of the second phase III
study on the candidate will trigger milestone payments from Endo
BioDelivery Sciences presently carries a Zacks Rank #4 (Sell).
However, pharma stocks such as
) currently look better positioned with a Zacks Rank #1 (Strong
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