Favrille resolves debt obligations
This article was originally published in Scrip
Executive Summary
Favrillehas resolved its debt obligation to its creditors, General Electric Capital Corporation and Oxford Financial Corporation, which have agreed to release the general lien on the company's assets. The lenders have now received $8.8 million as repayment of outstanding principal and accrued interest and Favrille has reimbursed them with $47,000 of further transaction costs. Acceleration of the loan was triggered after the company's cash fell below the $14.5 million minimum cash covenant on May 30th. Following the failure of the company's lead product, Specifid, to demonstrate activity in a Phase III registration trial, Favrille's future looks uncertain. The company now faces either a reorganisation which might involve in-licensing of products, a merger with another entity or liquidation of the company either inside or outside of bankruptcy, said Dr John Longenecker, president and CEO of Favrille.
You may also be interested in...
Myotec and Hybrid merge to form PsiOxus
Myotec Therapeutics and Hybrid Biosystems are to merge to form PsiOxus Therapeutics with £3.6 million in funding from a syndicate led by the former's previous backer Imperial Innovations.
Trophos's MitoCare programme receives €6 million EU funding
A Phase II efficacy and safety study of Trophos' cholesterol-oxime compound TRO40303 to treat cardiac ischaemia-reperfusion injury in acute myocardial infarction patients will be substantially underwritten by funds from the European Union, the Marseilles-based company says. Trophos is to head a new 16-partner consortium called MitoCare, a 2.5 year international translational medicine project that has received a €6 million award under the European Union Seventh Framework Programme for research. The project will begin in January 2011.
Novartis and Alcon reach compromise to settle merger saga
Alcon's board of directors has finally approved a merger agreement with Novartis for the Alcon shares the latter does not already own, drawing a close to protracted negotiations that first began nearly a year ago.