EIB's InnovFin Financing Supports Innovative Companies under Horizon 2020
Financing to Support Manufacturing Facility Expansion and Development of Lead Product Candidates
ATHLONE, Ireland, March 30, 2015 (GLOBE NEWSWIRE) -- Innocoll AG (Nasdaq:INNL) today announced the securing of a credit facility for up to €25 million ($27.5 million) of debt financing to support the expansion of the Company's manufacturing and research and development facility in Saal Germany and clinical development of the Company's lead product candidates, XaraColl®, Cogenzia® and CollaGUARD®. The debt financing, which Innocoll AG entered into together with its subsidiary, Innocoll Pharmaceuticals Limited, is provided by the European Investment Bank (EIB), the long-term lending institution of the European Union owned by its Member States, pursuant to the "InnovFin – EU Finance for Innovators" Midcap Growth Finance program under the European Union's Horizon 2020 research and innovation program.
"The next 12-18 months is a critical period of execution for Innocoll," said Tony Zook, chief executive officer of Innocoll. "This funding will enable us to remain aggressive in our efforts to deliver on our key near term milestones, including the expansion of our manufacturing facility in Saal, Germany as well as the advancement of our late stage clinical development programs. We are pleased to be working with EIB and delighted to be able to participate in the InnovFin program, which provides Innocoll with very favorable financing terms."
The EIB loan commitment of €25 million is comprised of a €15 million tranche which can be drawn in whole or in part at any time up to June, 2016, and a €10 million tranche which can be drawn subject to either of the company's Phase 3 trials for XaraColl or Cogenzia meeting the required primary end points, at any time up to September 2016. The loan has a five year maturity, and an interest rate of 12% per annum, compounded annually. Interest accrues during the term of the loan and is payable only at maturity, and principal is repaid in a single bullet payment at maturity, resulting in no cash payments required during the five year term of the loan. The loan may be repaid by Innocoll early at any time or could be required to be prepaid early by EIB in certain circumstances, in each case subject to a 1% or lower repayment indemnity. There are no commitment fees and no warrants. The loan, which is guaranteed by Innocoll AG, is subject to the EIB's standard loan terms and conditions and, once a tranche is drawn, will include a pledge over the shares of Innocoll Pharmaceuticals Limited and a floating charge over the assets of Innocoll Pharmaceuticals Limited.
The EIB is the long-term lending institution of the European Union owned by its member states. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. "InnovFin – EU Finance for Innovators" MidCap Growth Finance, is backed by the European Union under Horizon 2020 Financial Instruments. InnovFin is a new range of EIB Group products designed to facilitate access to finance for innovative businesses. InnovFin MidCap Growth Finance offers long-term senior, subordinated or mezzanine loans from €7.5 to 25 million for innovative larger midcaps (up to 3000 employees), but also to small-to-medium enterprises and small midcaps.
About Innocoll AG
Innocoll is a global, commercial-stage, specialty pharmaceutical company. The company develops and manufactures a range of pharmaceutical products and medical devices using its proprietary collagen-based technologies. The company's late-stage product pipeline is focused on addressing a number of large unmet medical needs, including: XaraColl® for the treatment of post-operative pain; Cogenzia® for the adjuvant treatment of diabetic foot infections; and CollaGUARD®, a barrier for the prevention of post-surgical adhesions. The Company's approved products include: CollaGUARD, Collatamp® G, Septocoll®, RegenePro®, Collieva®, CollaCare®, Collexa®, and Zorpreva™, which are sold through strategic partnerships with various partners including Takeda, Biomet, and EUSA Pharma.
CollaRx®, Collatamp®, CollaGUARD®, Collieva®, CollaCare®, Collexa®, Cogenzia® LidoColl®, LiquiColl®, and XaraColl® are registered trademarks, and CollaPress™, DermaSil™, Durieva™, and Zorpreva™ are trademarks of the company.
Forward-looking Statements
"Any statements in this press release about our future expectations, plans and prospects, including statements about the development of our product candidates, such as the timing, conduct and results of our Phase 3 clinical trials of XaraColl for the treatment of post-operative pain and Cogenzia for the adjuvant treatment of diabetic foot infections, and clinical studies of CollaGUARD, our barrier for the prevention of post-surgical adhesions, and the development of our other product candidates based on our proprietary collagen drug formulation platform and the sale of approved or marketed products, and other statements containing the words "anticipate," "believe," "estimate," "expect," "intend", "goal," "may", "might," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including statements about the clinical trials of our product candidates. Such forward-looking statements involve substantial risks and uncertainties that could cause our clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, those related to the timing and costs involved in commercializing our products and product candidates, the initiation and conduct of clinical trials, delays in potential approvals by FDA of the commencement of trials, availability of data from clinical trials, positive results from such trials and expectations for regulatory approvals, our scientific approach and general development progress, the composition of the company's supervisory board, the availability or commercial potential of our product candidates, the sufficiency of cash resources and need for additional financing, our ability to comply with our obligations under the EIB loan including the payment obligations and in particular the requirement to achieve positive results under certain clinical trials in order to draw under the EIB loan or other actions and other factors discussed in the "Risk Factors" section of the final prospectus for our IPO, which is on file with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Company's views as of the date of this release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this release."