Palette Life Sciences Announces Transaction With Global Investment Leader OrbiMed
Transaction enables a debt facility of up to $75 million
Capital infusion will assist global expansion of Palette’s product portfolio, including Barrigel in the United States
SANTA BARBARA, Calif. and STOCKHOLM, Sweden, March 21, 2023 (GLOBE NEWSWIRE) -- Palette Life Sciences, a global life sciences company, today announced that it has entered into a debt financing facility for up to $75 million (“debt facility”) with OrbiMed, a leading investor in the healthcare industry. The non-dilutive capital provides further financial flexibility to support global commercial and product development activities across its product portfolio.
Under the terms of the debt facility, Palette Life Sciences can borrow up to $75 million based on the achievement of certain milestones and other specified conditions, including $50 million immediately available at closing. A portion of the proceeds will go towards paying Palette’s outstanding balance under its credit facility with Silicon Valley Bank (“SVB”).
Per Langö, CEO and Board Director of Palette Life Sciences, said “Securing this credit facility is a significant step forward for Palette Life Sciences. This access to increased non-dilutive funding will support the expansion of our global footprint and the development of our portfolio of minimally invasive treatments targeting unmet medical needs in radiotherapy and interventional oncology procedures, urology/urogynecology disorders and colorectal conditions. This facility provides sufficient resources to deliver on our key commercial and regulatory milestones.”
Palette Life Sciences’ product portfolio leverages its global rights to Non-Animal Stabilized Hyaluronic Acid (NASHA®), a stabilized form of hyaluronic acid, as a foundational platform for its products that serve urologic, oncologic, pediatric and incontinence patients across the globe. NASHA has been proven safe and effective and has been used for more than 20 years in over 50 million medical procedures worldwide. Licensed by Palette from Galderma, NASHA’s proprietary attributes make it ideal for a broad range of medical uses.
Palette Life Sciences’ flagship product, Barrigel®, is made from NASHA. Barrigel is an injectable biodegradable material that separates the prostate from the rectum to protect it during radiation therapy treatment for prostate cancer. Barrigel received FDA clearance in May 2022 and is available within the US, EU, and Australia. Barrigel is being developed for future market introduction in Japan and Latin America. Pivotal Safety and Efficacy Clinical Trial Data of Barrigel® were recently published in JAMA Oncology where the product was proven safe and effective in improving rectal dosimetry and reducing acute Grade 2+ GI toxicity in the first FDA-reviewed randomized controlled trial of rectal spacing using hypofractionated radiotherapy.
James Leech, VP of Strategy & Corporate Development at Palette Life Sciences, stated “This debt financing provides Palette Life Sciences with important growth capital as we continue to progress our product portfolio into expanded indications and drive continued revenue growth globally. We are thrilled to be partnering with the OrbiMed team and have a shared vision for Palette’s future.”
Matthew Rizzo, General Partner at OrbiMed, added, “We are thrilled to support the Palette Life Sciences team as they seek to expand their commercial footprint within uro-oncology and urology care settings globally.”
About Palette Life Sciences
Palette Life Sciences is a fully integrated life sciences company whose products improve patient outcomes in radiotherapy and interventional oncology procedures, urology/urogynecology disorders and colorectal conditions. The company’s portfolio of available products includes Barrigel®, Deflux®, Solesta®, and Lidbree™. Palette Life Sciences moves rapidly to leverage novel applications of existing technologies to create breakthrough medical solutions. This focus enables the company to serve those often overlooked by traditional medical companies and improve patient quality of life. Led by experienced healthcare executives, Palette Life Sciences is headquartered in Stockholm, Sweden, with offices in Santa Barbara, California; Dallas, Texas; and Sydney, Australia. Learn more at http://www.palettelifesciences.com.
OrbiMed is a leading healthcare investment firm, with approximately $19 billion in assets under management. OrbiMed invests globally across the healthcare industry through a range of private equity funds, public equity funds, and royalty/credit funds. OrbiMed's team of over 100 professionals is based in New York City, San Francisco, Shanghai, Hong Kong, Mumbai, Herzliya and other key global markets.
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