Leading the Way in Life Science Technologies

GEN Exclusives

More »

GEN News Highlights

More »
November 25, 2009

Labopharm Secures Access to C$25 Million

  • Labopharm entered into a standby equity distribution agreement (SEDA) with YA Global Master, a fund managed by Yorkville Advisors. Under the terms of the agreement, YA has committed to provide up to C$25 million ($23.8 million) of capital during the next three years, at Labopharm's discretion, through the purchase of newly issued Labopharm common shares.

    "With a number of potential cash-generating milestones on the horizon, a standby equity facility is well suited to our company at this time," says James R. Howard-Tripp, president and CEO, Labopharm. "Should we choose to access it, the facility provides a flexible, low-cost source of capital in an amount and at the time of our choosing, with a built-in minimum price."

    Labopharm seeks to optimize the performance of existing small molecule drugs with its controlled-release technologies. The company's lead product, a once-daily formulation of tramadol, is available in 17 countries including the U.S., Canada, major European markets, and Australia. The company's second product, a novel formulation of trazodone for the treatment of major depressive disorder, is under regulatory review in the U.S. and in Canada. The company also has a pipeline of follow-on products in both preclinical and clinical development.

Related content