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Print Edition StoriesThursday, February 26, 2009
Clinical Data does $50M debt deal
By Marc Songini
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Newton-based biotech Clinical Data Inc. has wrapped a $50 million convertible debt financing deal with private equity firm New River Management V LP.
The transaction involves unregistered convertible notes payable eight years from the issuance date, with interest at a rate of 9.72 percent annually. Clinical Data (Nasdaq: CLDA) is not allowed to prepay the notes for the first two years from the date of issuance unless investors approve it. Additionally, investors also received two tranches of warrants with a term of five years.
The primary use of the money will be to promote Clinical Data’s two late-stage therapeutic programs past key milestones planned for this year. Those include the completion of its second Phase 3 registration trial and planned new drug application filing for vilazodone, a drug candidate for the treatment of depression. It also will include the initiation of its Phase 3 clinical program for Stedivaze, a potential cardiac stress agent.
The company stated it has been building a pipeline of products that offer opportunities for partnerships and collaborations. Clinical Data officials said the company planned to close several strategic business transactions around these and other assets in the coming months.
In January, the company announced a partnership in China with SinoGenoMax Co.
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