Flamel Technologies secures $15M in financing Deerfield Management announced that it had closed a transaction with Flamel Technologies and two of Flamel's subsidiaries to provide $15M. The objective of the financing is to enable Flamel to continue development programs and regulatory filings related to its internal pipeline of products. Deerfield provided the $15M in return for notes bearing 12.5% interest that amortize over a period from 18 months to 4 years. Deerfield also received a royalty of 1.75% of net sales of certain products being developed by Flamel's U.S. subsidiary, Eclat Pharmaceuticals, and transaction fee. The structure was responsive to Flamel's cash flow requirements and interest in avoiding equity dilution.
Flamel Technologies transfers intangible property to Irish-based subsidiary Flamel Technologies announced that it is moving all intangible property from its French entity to its Irish-based entity as a part of a global reorganization. The intangible property includes patents on its drug delivery platform technologies, clinical data sets and other intangible assets related to its pipeline of proprietary products in development. Flamel's proprietary drug delivery platforms include its Micropump and Medusa platforms. The company anticipates the transfer will result in a one-time tax payment of approximately $14M to the French government. The transfer of these assets is effectively immediately.
Flamel Technologies price target raised to $29 from $21 at SunTrust SunTrust increased its price target on Flamel after meeting with the company's CEO, as the firm now expects the company to raise the price of its Bloxiverz drug next year beyond the firm's previous outlook. SunTrust keeps a Buy rating on the shares.