Vyteris, Inc. Receives $2.5 Million Loan from Ferring Pharmaceuticals, Inc.
FAIR LAWN, N.J.--(BUSINESS WIRE)--Vyteris, Inc. (OTC BB: VYTR), manufacturer of the first FDA-approved active patch transdermal drug delivery system, received $2.5 million principal amount of financing effective on July 9, 2008 from Ferring Pharmaceuticals, Inc. (“Ferring”), which represented an advance on a potential milestone payment for a Phase II clinical trial of a product for female fertility treatment. The $2.5 million was advanced in the form of a loan and bears interest at the rate of 10 percent per annum. If Ferring elects to proceed with the Phase II trial, the principal amount of the loan will be paid off through application of the Phase II payment which would otherwise be due under the License Agreement between Vyteris and Ferring.
“This advance payment represents our productive working relationship with Ferring,” said Haro Hartounian, president of Vyteris, Inc. “We feel that Ferring’s advance of the milestone to us, through the loan, is further indication of our progress in our joint clinical development efforts.”
The possible Phase II clinical trials would be significant in scope and are designed to establish proof of principle. Phase I trials successfully demonstrated the first transdermal delivery of a peptide molecule.
“This financial support validates Ferring’s commitment to this project. This funding will be used in part to cover the projected costs of a Phase II clinical trial,” said Donald Farley, executive chairman of Vyteris, Inc. “While we continue to explore other avenues to raise capital needed for further operations, we continue our efforts in controlling costs and expenditures while focusing on our development and licensing initiatives.”
The product under development by Vyteris and Ferring employs Vyteris’ patented Smart Patch drug delivery technology. The technology is designed to provide a safe and effective method of delivering a peptide hormone from a patch automatically using a low-level electrical current, allowing continuous pulsatile delivery of a peptide in a painless, convenient manner. This precise dose control is an essential characteristic in the delivery of therapeutics for the treatment of female infertility. The Smart Patch technology system is needle-free and convenient to use, minimizing concerns about patient compliance.
About Vyteris, Inc.
Vyteris, Inc. is the maker of the first active drug delivery patch to receive marketing clearance from the U.S. Food and Drug Administration (FDA). Vyteris’ proprietary active transdermal drug delivery (iontophoresis) technology delivers drugs comfortably through the skin using low-level electrical energy. This active patch technology allows precise dosing, giving physicians and patients control in the rate, dosage and pattern of drug delivery that may result in considerable therapeutic, economical, and lifestyle advantages over existing methods of drug administration. For more information, please visit our website at www.vyteris.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as “expect,” “estimate,” “project,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “would,” “should,” “believes,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release include, without limitation, statements concerning the potential impact of the new marketing agreement and other matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others, the competitive environment and competitive responses to the new marketing arrangement. The Company has described other important risks and uncertainties under the caption "Risk Factors" in its most recent Annual Report on Form 10-KSB and in various filings made with the SEC. Actual results may differ materially from those contained in the forward-looking statements in this press release.
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