NEW YORK--(BUSINESS WIRE)--Deerfield Management Company announced today that it has committed to invest up to $35 million dollars in Cytomedix, Inc. (OTCQX: CMXI) through a senior secured convertible debt facility with warrants.
“The recent payment decision by CMS has significantly expanded the reimbursement coverage for AutoloGel allowing healthcare providers in the outpatient setting to treat a broad patient population including those with diabetic foot ulcers, pressure ulcers and venous ulcers. Given that AutoloGel has shown efficacy across a wide range of wound types, this decision and our financing has the potential to transform the Company. We are pleased to be partnering with Cytomedix to support this critical growth phase of the Company,” stated Steve Hochberg, a Partner at Deerfield.
“In our view, government payment changes, retrenching of some leaders in the advanced wound care market, and continued growth in the incidence of chronic wounds have presented significant opportunities for Cytomedix,” said Martin Rosendale, Chief Executive Officer of Cytomedix. "The team at Deerfield has demonstrated a clear and unique understanding of this market and the opportunities before us, and their investment provides the fuel necessary to execute our plans and capitalize on the recent changes,” added Mr. Rosendale.
The agreement will be funded in two separate tranches. Deerfield has initially provided $9 million dollars and will invest an additional $26 million after shareholder approval to authorize the additional shares of the Company’s common stock required for a potential conversion of the debt facility, warrants and for other corporate requirements. With each disbursement, Deerfield will receive a 3% transaction fee of the amount drawn. Amounts drawn accrue interest at 5.75% per annum, payable quarterly and must be repaid in 5 years. The warrants will expire on the seventh anniversary of the agreement.
Cytomedix, Inc. is an autologous regenerative therapies company commercializing innovative platelet technologies for wound care. The Company markets the AutoloGel™ System, a device for the production of autologous platelet rich plasma ("PRP") gel for use on a variety of exuding wounds. For additional information please visit cytomedix.com.
Deerfield is an investment management firm, committed to advancing healthcare through investment, information and philanthropy.
For more information, please visit www.deerfield.com