Alimera Sciences Closes $30 Million In Series C Financing, Increasing Stake In Medidur™ FA
Atlanta, GA—Alimera Sciences today announced that it has closed a Series C financing round of $30 million with all five of the company’s existing venture capital firms exercising the right to participate at their full pro rata share.
The proceeds from the Series C will enable Alimera to, as previously announced, acquire a majority stake in Medidur™ FA, the company’s Phase III investigative treatment for diabetic macular edema (DME), from development partner pSivida Ltd (NASDAQ:PSDV, ASX:PSD, Xetra:PSI) and fund the remaining development obligations for the product.
Under the new agreement, Alimera will assume pSivida’s Medidur FA development responsibilities and increase its share of future profits from 50 to 80 percent. For this increased equity in Medidur FA, Alimera has paid pSivida $12 million in cash and has issued a $15 million note (which would accrue interest of up to $6 million over the life of the note) and will make an additional $25 million milestone payment upon FDA approval of the product. Alimera Sciences will also assume pSivida’s remaining development obligations.
“Alimera is fortunate to have received continued support from our investors who share our confidence in the potential Medidur FA can bring to the many sufferers of DME,” said Dan Myers, President and CEO of Alimera Sciences.
In connection with this acquisition, Alimera will complete the licensing of the Medidur technology for use with NADPH oxidase inhibitors recently obtained from Emory University. Alimera is pursuing a treatment for dry AMD with these compounds.
“Alimera will now also have solidified access to the Medidur delivery platform for our announced NADPH oxidase inhibitors for the treatment of dry age-related macular degeneration (AMD)” said Myers.
Diabetic retinopathy (DR), a complication of diabetes mellitus, is the leading cause of blindness in the working-age population of developed countries. At any time during progression of diabetic retinopathy, patients can develop DME which involves retinal thickening of the macular area. In the United States, as many as 200,000 people are diagnosed with DME each year and an estimated 1,000,000 people suffer from DME. Currently, there are no FDA approved drug treatments for DME.
