Transdel Pharmaceuticals Inc., a specialty pharmaceutical company focused on developing topically administered products using its Transdel™ proprietary transdermal delivery platform, today announced completion of a private source financing agreement in the amount of $1 million.
The source of the financing is an existing shareholder, backed up by a senior convertible promissory note carrying an annual interest rate of 7.5% and a two-year term. The holder has the right to convert all or part of the outstanding principal and accrued interest on the note into shares of Transdel common stock at a conversion rate of $1.00 per share. Transdel has the right to prepay the note at any time, providing written notice to the holder.
Transdel CFO and Acting CEO, John Lomoro, commented on the agreement. “We are pleased by the continued support from our shareholders. This financing provides us with additional resources to continue planning the second Phase 3 clinical study for our lead topical pain drug, Ketotransdel® as well as continue our ongoing partner discussions for Ketotransdel® with U.S. and foreign based companies. During 2010, we plan to raise additional funding through either partnership arrangements or further equity or debt financings to complete the Phase 3 clinical program for Ketotransdel®.”
Transdel’s innovative-patented Transdel™ cream formulation technology is designed to facilitate the effective penetration of a variety of products through the tough skin barrier. Over the past year, the company has experienced a number of important events.
• In June, 2009, Transdel announced a licensing agreement, giving JH Direct, LLC exclusive worldwide rights to Transdel’s anti-cellulite cosmeceutical product using the transdermal delivery system. A direct response television campaign is expected for the second half of 2010.
• In October, 2009, Transdel announced top-line results from the Phase 3 clinical study of Ketotrandsel®, a topical cream-based non-steroidal anti-inflammatory drug for acute pain. The study was favorable, demonstrating excellent safety and tolerability for the drug. Further analysis demonstrated statistical significance on the primary efficacy endpoint, announced in January, 2010.
• Transdel also added two experienced pharmaceutical executives to the management team, with the appointment of Joachim P.H. Schupp, M.D., as Chief Medical Officer, and Terry Nida as Chief Business Officer. In addition John Lomoro, the company’s CFO, is serving as Acting CEO, as the board of directors undertakes a search for a permanent CEO. Lomoro replaced Juliet Singh, who stepped down in February 2010.