Business Editors/Health/Medical Writers
MINNEAPOLIS--(BUSINESS WIRE)--March 31, 2003
Orphan Medical, Inc. (Nasdaq:ORPH), announced today that it has obtained a revolving line of credit with Silicon Valley Bank. The line can be used at the discretion of the Company to obtain working capital in support of increasing revenues generated primarily by Xyrem(R) (sodium oxybate) oral solution, a medication that treats cataplexy associated with narcolepsy.
The line provides the Company with the lesser of $3.5 million or 75 percent of qualifying assets including accounts receivable and carries an interest rate on borrowings at the prime rate plus two percent. The agreement also contains provisions that are standard in working capital lines of credit. A five-year warrant to purchase 15,000 shares of Orphan Medical common stock at the market price was also included.
"Revenues to date are in line with our 2003 revenue guidance of $25 to $27 million, and our working capital needs are accordingly increasing as forecasted," said Timothy McGrath, Orphan Medical Chief Financial Officer. "This additional line of credit allows us to be flexible in our operations and better prepared should opportunities arise that require us to move quickly."
Orphan Medical acquires, develops, and markets pharmaceuticals of high medical value for inadequately treated and uncommon diseases treated by specialist physicians. Orphan Medical's Internet Web site address is http://www.orphan.com
The information in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from the Company's assumptions and expectations. These are set forth in the cautionary statements included in Orphan Medical's most recent Form 10-Q or Form 10-K filed with the Securities and Exchange Commission. (These documents can be accessed through the Orphan Medical Web site at http://www.orphan.com). All forward-looking statements are qualified by, and should be considered in conjunction with, such cautionary statements.

Комментариев нет:
Отправить комментарий