Purdue invests $30 million in Infinity
This article was originally published in Scrip
Infinity Pharmaceuticals has issued two million shares of its common stock to Purdue Pharma, which bought the stock for $15 per unit, or $30 million in total. The sale follows the strategic alliance that Infinity entered into with Purdue and Mundipharma last November (Scrip Online, November 25th, 2008). Under the agreement Purdue may buy up to six million shares between the beginning of this year and the end of June 2012. Purdue has now invested $75 million in Infinity equity financing and has made a $50 million line of credit available to the company. Draws from the loan facility may be made at any time after April 1st this year and must be repaid with interest by January 7th, 2019. Infinity now expects to have sufficient cash to fund its current operations, R&D and commercial plans until the end of 2012.