Under the terms of the deal, Derrfield will provide $10m via a secured senior convertible note and up to a further $50m through a secured senior term debt facility.
KemPharm will use the funds to advance lead product candidate KP201 through potential FDA approval and into commercial development.
KP201 is composed of hydrocodone chemically bound to a ligand and acetaminophen. It is in development for acute moderate to moderately severe pain and has attributes which could reduce potential for abuse and reduce or eliminate opioid-induced constipation.
Deerfield partner Jonathan Leff said, “We believe that KP201 and the rest of KemPharm’s abuse-deterrent prodrugs could play an important role in helping to address the epidemic of opioid abuse.
“We are pleased to partner with KemPharm to advance the company’s programs to potential FDA approval and commercialization.”
In April this year Deerfield secured $1.6bn for its third fund.
The firm invests in various segments of the healthcare industry including biotechnology, pharmaceuticals, medical devices, healthcare services, and animal health.
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