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GEN News Highlights : Apr 1, 2008

Plethora Could Earn up to $25M in Cash through Financing Deal with Paul Capital Healthcare

Plethora will see $15 million immediately, while Paul Capital Healthcare will obtain revenue interest on male health portfolio.

Plethora Solutions reports that it could receive up to $28 million in cash through a revenue interest financing agreement with Paul Capital Healthcare. The funding will go toward advancement of the firm’s erectile dysfunction and premature ejaculation programs.

Plethora will get $15 million with signature of this agreement. Another $10 million will be paid only upon the first U.S. commercial sale of the firm’s late-stage compound for premature ejaculation, PSD502. In addition, Plethora has the option to have Paul Capital Healthcare invest $3 million this year through an equity subscription.

In return, Paul Capital Healthcare will receive interest on revenues generated from Plethora's male health portfolio. The revenue interest will come primarily from sales of ErecAid, PSD502, and PSD510. ErecAid is marketed by Plethora's subsidiary, Timm Medical, for the treatment of erectile dysfunction. PSD510 is reportedly in Phase III development for erectile dysfunction.