Fortical salmon calcitonin nasal spray manufacturer Unigene says that it is in danger of running out of cash before the end of the first quarter of 2013, due in part to the EMA’s July 2012 warning against the use of calcitonin nasal sprays.
Unigene President and CEO Ashleigh Palmer said, “The impact of the EMA’s recommendation represents a devastating setback and has prevented any possibility of us accomplishing our 2012 goal of fundamentally addressing the Company’s debt.” Prior to that recommendation, according to Palmer, Unigene “had been making excellent progress towards restructuring our balance sheet and recapitalizing the Company.”
Victory Park Capital Advisors has loaned the company $4 million, of which $3.5 million will go towards funding operations. The company has authorized key employee retention grants.
Palmer thanked Victory Park Capital for the “timely rescue” and added, “Despite the catastrophic impact the EMA’s recommendation has had on Unigene, we remain resolute and deeply committed to the multiple opportunities we believe exist for Unigene and its pipeline of novel therapeutic peptides and expanding portfolio of Peptelligence oral peptide drug delivery partnerships.” The Peptelligence platform also includes nasal peptide delivery technology.
Read the Unigene press release.
