EyePoint Pharmaceuticals announced that it has received stockholder approval for the second tranche of growth capital under a Securities Purchase Agreement (Second Tranche Transaction) with Essex Woodland (EW) Healthcare Partners, a healthcare-focused investment firm; Rosalind Advisors; and another accredited investor (Second Tranche Investors). Under the agreement, the company will offer and sell to the Second Tranche Investors an aggregate of approximately $25.5 million of units, with each unit consisting of one share of common stock of the company (Common Stock) and one warrant to purchase a share of Common Stock. The Second Tranche Transaction is expected to close on June 25, 2018.
Upon closing, and together with gross proceeds of approximately $9.5 million from the March 2018 equity financing with EW Healthcare Partners, EyePoint will have received total gross proceeds of $35.0 million. Assuming full exercise of the warrants, the total gross proceeds would reach $60.5 million.
In addition, the company intends to draw down an additional $5 million under the terms of its existing Credit Agreement with SWK Funding LLC, increasing the balance of the senior secured term loan to $20 million. Proceeds of the financing will be used to accelerate EyePoint’s transformation into a commercial-stage specialty biopharmaceutical company.
The company anticipates two product launches in the first half of 2019, including Dexycu, the first and only FDA-approved intraocular product administered as a single intraocular dose at the end of ocular surgery for the treatment of postoperative inflammation, and Yutiq three-year treatment of noninfectious uveitis affecting the posterior segment of the eye. Yutiq has been accepted for filing by the FDA and is currently under standard review with a Prescription Drug User Fee Act (PDUFA) date of November 5, 2018.
“EW Healthcare Partners recognizes the meaningful promise of Dexycu and Yutiq and EyePoint’s platform technologies, and values the opportunity to further support the commercialization of Dexycu and, if approved, Yutiq, two innovative products in areas of high unmet medical need,” said Ron Eastman, Managing Director of EW Healthcare Partners and a member of EyePoint’s Board of Directors.
“With this additional capital, EyePoint is well-positioned to execute on our transition to a commercial-stage company, with two potential product launches anticipated in the first half of 2019,” said Nancy Lurker, President and Chief Executive Officer of EyePoint Pharmaceuticals. “We appreciate the ongoing commitment of our stockholders and of EW Healthcare Partners and Rosalind Advisors, who recognize the value potential in our long-term vision. We look forward to executing on our commercialization plans and to fulfilling our promise of delivering ophthalmic products to patients with serious eye disorders.”