Deerfield Management provides Endologix with up to $170 million in funding
Deerfield Management agreed to provide Endologix, Inc. with up to $170 million in funding, including a $120 million, six-year secured term loan and a $50 million, three-year secured asset-based revolving line of credit.
Endologix, which is based in Irvine, California, is focused on developing endovascular stent grafts to treat abdominal aortic aneurysms (AAA).
In May 2016, the company announced its Nellix endovascular aneurysm sealing system had met the primary safety and efficacy endpoints in the EVAS FORWARD-IDE study. The researchers found 2.7 percent of patients had a major adverse event at 30 days, which met the primary safety endpoint, while the one-year treatment success rate of 94 percent met the primary effectiveness endpoint.
In November 2016, Endologix said the FDA requested two-year data from the EVAS FORWARD-IDE study, which the company expects to provide in the second quarter of 2017. At the time, Endologix said an FDA advisory panel could meet by the end of 2017 and make an approval decision in the second quarter of 2018.
Endologix also announced last month the first patients had enrolled in the ELEVATE IDE study, which is the pivotal trial examining the Ovation alto abdominal stent graft system for the repair of infrarenal AAA. The trial plans on enrolling up to 75 patients at 12 U.S. centers.
After deducting transaction expenses, Endologix estimates net proceeds from the term loan from Deerfield will be $113 million. The company plans on using the money to repurchase bonds due next year, unwind an agreement with Bank of America and for working capital and general corporate purposes.
In addition, Endologix issued Deerfield warrants to purchase up to 6.47 million shares (approximately 7.8 percent) of the company’s common stock at an exercise price of $9.23 per share. The stock was trading at $6.33 per share as of 11:30 a.m. Eastern Time on April 17.
In October 2015, Endologix and TriVascular Technologies signed a definitive merger agreement in a stock and cash deal valued at approximately $211 million.
Executive Editor
Tim Casey joined TriMed Media Group in 2015 as Executive Editor. For the previous four years, he worked as an editor and writer for HMP Communications, primarily focused on covering managed care issues and reporting from medical and health care conferences. He was also a staff reporter at the Sacramento Bee for more than four years covering professional, college and high school sports. He earned his undergraduate degree in psychology from the University of Notre Dame and his MBA degree from Georgetown University.