Journey Medical enters up to $20 million credit facility for potential rosacea drug launch
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Key takeaways:
- Journey Medical Corporation entered an up to $20 million credit facility supporting efforts to launch a papulopustular rosacea drug, DFD-29.
- A new drug application for DFD-29 was recently submitted to the FDA.
Journey Medical Corporation’s efforts to launch a new rosacea drug have received a boost of up to $20 million as the company has entered into a credit facility with an affiliate of SWK Holdings Corporation.
“This financing strengthens Journey Medical’s balance sheet and provides us with additional operational flexibility,” Claude Maraoui, co-founder, president and CEO of Journey Medical, said in a press release. “The funding will support general corporate purposes, as well as anticipated expenses for DFD-29, including ... preparation for its potential commercial launch, pending FDA approval.”
The arrangement sets Journey Medical up with a $15 million initial loan — intended for operations, commercial efforts and DFD-29 initiatives — and allows for an additional $5 million draw in 12 months, pending the achievement of certain metrics.
DFD-29 (minocycline hydrochloride modified release capsules 40 mg) is currently being developed for the treatment of papulopustular rosacea. Positive topline results in two phase 3 clinical trials were released over the summer. Journey Medical recently submitted a new drug application to the FDA for DFD-29, which is being developed in collaboration between Journey and Dr. Reddy’s Laboratories.
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