Flamel Technologies nets $14.5mm in debt financing from Deerfield

Small- and large-molecule drug delivery firm Flamel Technologies SA (French-based company that trades on Nasdaq) and two of its subsidiaries have netted $14.5mm by selling nonconvertible notes to two funds managed by Flamel’s largest stockholder Deerfield Management. The loan bears 12.5% interest and must be repaid over four years. The first payment of principal and interest is due in 18 months. Flamel will use the new money to support R&D and regulatory filings in the US and France. In a separate arrangement, Deerfield was granted a 1.75% royalty on net sales of products arising from the pipeline of Eclat Pharmaceuticals, a former Deerfield affiliate and niche brand and generic drug producer that Flamel acquired in March 2012.