Reliant Pharmaceuticals Announces $115 Million Initial Closing of Series D Convertible Preferred Units
Source: Reliant Pharmaceuticals, LLC
Liberty Corner, NJ, September 30, 2003 – Reliant Pharmaceuticals, LLC (“Reliant” or “Company”), a privately held, rapidly growing pharmaceutical company that markets branded, patent-protected pharmaceutical products to primary care physicians, today announced the $115 million initial closing of its Series D Convertible Preferred Units (including exchange of $37 million of existing secured debt). Reliant has reserved the right to raise up to an additional $140 million by way of the Series D financing (excluding debt exchange), which would bring the aggregate Series D financing to $220 million (excluding debt exchange).
The initial Series D closing was led by Invemed Catalyst Fund, L.P., and included, among others, investments by Bay City Capital Fund III, L.P., business interests of the Pritzker family, BayStar Capital and the family interests of Dr. Ernest Mario, Reliant’s Chairman and Chief Executive Officer.
Dr. Mario noted, “We expect this to be our last round of financing on our way to becoming a profitable, self-sustaining business. It is a remarkable feat for a company just celebrating its third year of product sales.”
Joe Krivulka, Reliant’s President and co-founder added “proceeds from the Series D financing will allow Reliant to better capture the value of our currently promoted product portfolio which includes Lescol® and DynaCirc® as well as Reliant’s first internally developed product InnoPran XL™, thanks to an increased sales and marketing effort”.
Proceeds of the Series D Preferred units will be used to position Reliant to accelerate the Company’s revenue growth, fund enhancement of existing promotional efforts for Reliant’s portfolio of marketed products, accelerate key drug development programs, fund the acquisition of new products and general corporate purposes. The company expects the next closing of the Series D Preferred to occur within 45 days.
About Reliant Pharmaceuticals
Reliant Pharmaceuticals, LLC is a privately held company founded in 1999 to market branded, patent protected, ethical pharmaceutical products to primary care and targeted specialty physicians. The Company markets a portfolio of products including: Lescol® (fluvastatin) and Lescol® XL (extended release tablets) for cholesterol management under an exclusive promotion agreement with Novartis Pharmaceuticals Corporation; DynaCirc® (isradipine) and DynaCirc CR® (an extended release formulation) for the treatment of hypertension; and Axid® (nizatidine) for the treatment of GERD and peptic ulcers. Reliant’s three national sales forces, totaling over 850 professionals, target over 80,000 high volume primary care and specialty physicians throughout the U.S.
Reliant also develops and implements sophisticated life cycle management strategies for its products and is also engaged in late stage development projects. The Company recently received FDA approval for InnoPran XL™, the first bedtime dosed beta-blocker for the treatment of hypertension. The Company has several additional cardiovascular products under development and has in-licensed rights to a novel late stage antiviral.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
To the extent any statements made in this release contain information that is not historical, these statements are essentially forward looking and are subject to risks and uncertainties, including the difficulty of predicting FDA approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the company’s filings with the Securities and Exchange Commission.
Reliant Pharmaceuticals, LLC
Lawrence (Larry) Gyenes, Chief Financial Officer,