Business & Finance
Acerus Enters into Loan Facility to Support Anticipated Product Launch and Sales and Marketing Initiatives
8 December 2017 - - Canadian specialty pharmaceutical company Acerus Pharmaceuticals Corp. (TSX: ASP) has entered into a senior secured term credit facility with Quantius Inc. for up to CDN USD5m, the company said.

USD 3m was available at closing, with the remaining USD 2m becoming available upon satisfaction of certain future conditions, including our US Partner for Natesto achieving a set number of prescriptions per month, and maintaining Estrace sales at a set minimum level.

The credit facility bears interest at a rate equivalent to the Bank of Canada prime plus 11.05% and matures on 1 December 2019.

As part of the transaction, Quantius will receive an underwriting fee representing a low single digit perrcentage of the maximum facility amount and a royalty fee representing a low single digit percentage of the company's revenues over the term of the facility capped at a high single digit percentage of the borrowed amount.

Under terms of the agreement, the company will have the option to prepay the loan with the payment of low single digit prepayment penalties, which will be fully offset against the royalty fee. The terms of the agreement also contain customary financial covenants.

The funds will be used primarily to support sales, marketing and new product development efforts.

Acerus Pharmaceuticals Corp. is a Canadian-based specialty pharmaceutical company focused on the development, manufacture, marketing and distribution of innovative, branded products that improve patient experience, with a primary focus in the field of men's and women's health.

The company commercialises its products via its own salesforce in Canada, and through a global network of licensed distributors in the US and other territories.

Acerus currently has two marketed products. Estrace, a product for the symptomatic relief of menopausal symptoms, is commercialised in Canada; and Natesto, the first and only testosterone nasal gel for testosterone replacement therapy in adult males diagnosed with hypogonadism, is commercialised in Canada and the US.

In addition, Natesto has been licensed for distribution in 30 countries worldwide. Marketing approvals in jurisdictions outside of North America are expected to take place over the course of the coming years.

Acerus' pipeline includes two innovative products: Gynoflor, an ultra-low dose vaginal estrogen combined with a probiotic, for which a NDS has been filed in Canada for the treatment of atrophic vaginitis, restoration of vaginal flora and treatment of certain vaginal infections; and Tefina, a clinical stage product aimed at addressing a significant unmet need for women with female sexual dysfunction.

Finally, the company owns or has a license to numerous patents relating to proprietary delivery systems as well as novel formulations of products currently in the early stage of development.

Quantius is a Toronto based commercial lender that attributes value to both tangible and intangible assets of innovative companies.

The Quantius team combines technology and operations expertise with credit management and originations depth, and levers a proprietary best-in-class Intellectual Property analytics platform to identify companies whose commercial outperformance is driven by superior IP.