Transactions transform Egalet into a commercial specialty pharmaceutical company paving the way for commercialization of late-stage pipeline of abuse-deterrent opioids

Company has entered into a debt financing of $15 million with Hercules Technology Growth Capital to fund the transactions and commercial expansion

Egalet to host conference call today at 9:00 AM EST
WAYNE, Pa. (GLOBE NEWSWIRE) -- Egalet Corporation (Nasdaq:EGLT) ("Egalet") today announced the licensing and acquisition of two innovative approved pain products transforming Egalet into a fully integrated specialty pharmaceutical company focused on developing and commercializing products indicated to treat patients living with moderate to severe pain. Egalet has agreed to license worldwide rights to OXAYDO(TM) (oxycodone HCI, USP) tablets for oral use only -CII, the first and only approved immediate-release oxycodone product formulated to deter abuse via snorting from Acura Pharmaceuticals. OXAYDO is approved in the United States and indicated for the management of acute and chronic moderate to severe pain where the use of an opioid analgesic is appropriate. In addition, Egalet has acquired SPRIX(R) (ketorolac tromethamine) Nasal Spray from Luitpold Pharmaceuticals. SPRIX is a non-steroidal anti-inflammatory drug (NSAID) indicated in adult patients for the short-term (up to five days) management of moderate to moderately severe pain that requires analgesia at the opioid level. With the addition of these two products, Egalet plans to build a commercial infrastructure that will help pave the way for the launch of Egalet's late stage pipeline of abuse-deterrent opioids.

"The license and acquisition of OXAYDO and SPRIX, two approved innovative pain treatments, helps transform Egalet into a fully integrated specialty pharmaceutical company in advance of the approval of our highly differentiated, late-stage pipeline of abuse-deterrent, extended-release products," said Bob Radie, president and chief executive officer of Egalet.

"These products, an immediate-release opioid formulated to deter abuse and a nasal spray NSAID delivering pain relief at an opioid level, are natural fits given our focus on providing patients treatment options for pain that may help deter abuse and misuse as well as accelerate our path to revenue generation and profitability."

To fund these transactions, Egalet has consummated a debt financing with Hercules Technology Growth Capital of $15 million. Terms of the debt financing include an interest rate equal to the greater of either 9.4 percent or 9.4 percent plus the prime rate as reported in the Wall Street Journal minus 3.25 percent. Payments under the loan agreement are interest only for 12 months, followed by 30 equal monthly payments of principal and interest through the scheduled maturity date on July 1, 2018. As part of the financing, Egalet issued Hercules a warrant to purchase $600,000 of its common stock.

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