MonoSol Rx Closes $20 Million in Private Equity Financing
Funds Will Support Business Development, Clinical Trial Progress and Pipeline Expansion
Warren, NJ and Portage, Ind. (September 25, 2008) – MonoSol Rx, the developers of PharmFilm™ technology and a drug delivery company specializing in dissolving thin film pharmaceutical products, announced today the closing of a private equity financing round totaling $20 million, including the conversion of $10 million of bridge loan debt funded in November, 2007. The round was led by the Ed Bass Group of Fort Worth, Texas with The Halifax Group and CNF Investments a subsidiary of Clark Enterprises, Inc as other major investors.
MonoSol Rx will use the funds for general corporate purposes, capital equipment investments and for the advancement of its research and development programs targeting prescription and over-the-counter pharmaceutical products that employ PharmFilm, the Company’s proprietary thin film drug delivery technology.
A. Mark Schobel, Chief Executive Officer of MonoSol Rx, commented, “This current round of equity financing, which comes on the heels of a $10 million debt facility established in April of this year, further strengthens MonoSol Rx’s cash position and provides us with the resources we need to develop and commercialize key products utilizing our PharmFilm drug delivery technology. Our ability to close these two rounds of financing, combined with our recently announced partnership with Strativa Pharmaceuticals, key US patent allowances, and the expansion of our business development and operational leadership, exemplifies MonoSol Rx’s growth potential and confidence in the value that our thin film technology offers across the entire drug development spectrum.”
Robert J. Flanagan Executive Vice President of Clark Enterprises, Inc. and Managing Director of CNF Investments LLC remarked, “MonoSol Rx represents an extremely compelling and highly differentiated business and technology story, and as an investment, fits very well with CNF’s strategy of targeting companies that have a clear growth horizon and the ability to define the market in which they are involved. In MonoSol Rx and PharmFilm, we see a company and technology that could alter the landscape in which drugs are administered and the manner by which pharmaceutical companies introduce new products and maximize patent-expired compounds.”
Keith J. Kendall, Chief Financial Officer of MonoSol Rx, commented, “We are very pleased to have the endorsement and support of seasoned investors like The Ed Bass Group, Halifax and Clark Enterprises. This transaction marks a significant milestone in our financing efforts. We have had a strong start to 2008 with revenues through the first six months of 2008 that exceed total revenues for all of 2007. Now that we have met our near term capital goals, we look forward to focusing on developing and commercializing the Rx products in our pipeline for our partners.”
About MonoSol Rx
MonoSol Rx is a specialty pharmaceutical company leveraging its proprietary PharmFilm® technology to deliver drugs in quick dissolving films. PharmFilm® is designed to benefit patients by improving the convenience, efficacy, and compliance of currently marketed drugs. The Company is a leader in thin film drug delivery and has a strong intellectual property position, a portfolio of commercialized OTC drug products, and a pipeline of prescription formulations utilizing its PharmFilm® technology. With a vertically integrated development and production infrastructure, MonoSol Rx has the capacity to manufacture OTC drug products for near-term revenues that enable the funding of prescription product development programs that will generate long-term value.The Company’s commercialization strategy for all PharmFilm® products is to partner with the innovator or other specialty pharma or leading consumer products companies who have the core competency to sell-in and manage the sales and marketing of the products. For the Company’s existing and future partners, PharmFilm® formulations represent revenue-life cycle extensions for products with patent lives that have expired or are approaching expiration. PharmFilm® is also a tool to help sales and marketing partners differentiate in competitive markets while offering unique advantages over drugs dosed by traditional tablets, capsules and ODTs.