Strongbridge Biopharma plc (NASDAQ:SBBP)
Strongbridge Biopharma plc (NASDAQ:SBBP) shares are up over 15% and are trading around $8.00 on a volume figure over three times the daily average. Strongbridge Biopharma plc (NASDAQ:SBBP) has never posted any earnings or profits.
Strongbridge Biopharma is a global commercial-stage biopharmaceutical company that develops and commercializes therapies for rare diseases with significant unmet needs. Strongbridge’s first commercial product is KEVEYIS® (dichlorphenamide). The drug is the only FDA-approved treatment for hyperkalemic, hypokalemic, and related variants of Primary Periodic Paralysis. KEVEYIS has orphan drug exclusivity status in the United States through August 7, 2022. Strongbridge has a clinical-stage pipeline of therapies for rare endocrine diseases. RECORLEV™ (levoketoconazole) is a cortisol synthesis inhibitor currently being evaluated for the treatment of endogenous Cushing’s syndrome, and veldoreotide, a next-generation somatostatin analog being investigated for the treatment of acromegaly. Both RECORLEV and veldoreotide have received orphan designation from the U.S. Food and Drug Administration and the European Medicines Agency.
On July 17, 2017, Strongbridge Biopharma plc (NASDAQ:SBBP) announced that it has entered into a $50 million senior credit facility with CRG LP (“CRG”), a healthcare-focused investment firm, to retire its existing debt facility and provide additional capital. The term loan agreement has a six-year term with three years of interest-only payments. The interest-only period may be extended to six years based upon the achievement of certain milestones during the first three years of the loan term. As a condition to the new credit facility, Strongbridge Biopharma plc (NASDAQ:SBBP) issued warrants with a seven-year term to CRG to purchase 394,289 of the Company’s ordinary shares at an exercise price of $7.37 per share.
Strongbridge initially borrowed $40 million under the term loan agreement and has the option to borrow an additional $10 million based upon the achievement of certain revenue milestones on or prior to June 30, 2018. Concurrent with this first tranche, CRG purchased $3 million of the Strongbridge’s ordinary shares at a price of $6.98 per share.
Strongbridge Biopharma plc (NASDAQ:SBBP) will host a conference call on Monday, August 7 at 9:00 a.m. ET. To access the live call, dial 844-285-7153 (domestic) or 478-219-0180 (international). The conference call will also be audio webcast from the Company’s website at www.strongbridgebio.com under the “Investor/Webcasts and Presentations” section. A replay of the call will be made available for one week following the conference call. To hear a replay of the call, dial 855-859-2056 (domestic) or 404-537-3406 (international) with conference ID 61074112.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.