Surface Pharmaceuticals, an affiliated company of Imprimis Pharmaceuticals, announced it has entered into a definitive stock purchase agreement with an affiliate of Flying L Partners to raise proceeds of up to approximately $20 million in a private placement of its Series A preferred stock.
Surface Pharmaceuticals intends to use the proceeds of the Series A financing to advance its clinical development programs focused on ocular surface disease, including dry eye disease treatments, by seeking FDA approval for three drug candidates for up to five indications, as well as for general corporate purposes.
“The drug candidates we are developing may provide solutions to millions of Americans who are in need of effective therapies to treat ocular surface conditions such as dry eye disease and blepharitis,” Surface Pharmaceuticals CEO Kamran Hosseini, MD, PhD, said in a company news release. ” The proceeds from this transaction, along with the involvement of Flying L Partners, will help ensure our long-term success as we execute the initial stages of our drug development programs.”
“We are excited to fund this Series A round of financing and team up with Surface Pharmaceuticals. There are an estimated 30 million Americans who suffer from some form of dry eye disease, but only approximately 4 million prescriptions were dispensed in 2017, leaving a large unmet need in the market. We believe the opportunity to finance these drug development programs will ultimately benefit patients, their providers, and reward investors,” William J. Link, PhD, Principal, Flying L Partners, said in the news release.
Imprimis CEO, Mark L. Baum, said, “The principals of Flying L have backed many of the most consequential ophthalmic companies over the past three decades. We could not have found a better partner to help develop Surface’s ocular surface disease drug candidates.”
The closing of the Series A financing will allow Surface Pharmaceuticals to be deconsolidated from Imprimis and make it a separately financed and managed entity. Upon the expected completion of the Series A financing, Imprimis will maintain an approximately 30% ownership stake in Surface Pharmaceuticals and retain royalty interests in the Imprimis contributed formulations. Upon signing of the definitive stock purchase agreement on May 11, 2018, Surface Pharmaceuticals closed on initial proceeds of approximately $15 million, with a second closing of up to an additional $5 million expected to occur within the next 90 days.