GPB Capital Completes $30 Million Debt Investment in Emmaus Life Sciences
- On January 18, 2018
Proceeds from Senior Secured Convertible Note Will Provide Emmaus with Capital to Launch its FDA-Approved Oral Treatment for Sickle Cell Disease
New York – January 18, 2018 – GPB Capital Holdings, LLC (GPB Capital) announced today that it has made a debt investment in Emmaus Life Sciences, Inc. (Emmaus). Proceeds from the investment will help Emmaus commercially launch Endari™ (L-glutamine oral powder), its prescription treatment for sickle cell disease (SCD), which was approved in 2017 by the Food and Drug Administration (FDA) .
The investment is consistent with GPB Capital’s ongoing strategy for debt investments. GPB Capital offers senior secured loans to small and medium-sized businesses. More information about GPB Capital’s debt investment strategy is available at https://gpb-cap.com/our-strategies/debt-strategies/.
“We are glad to support Emmaus Life Sciences in this important phase of its commercialization of Endari,” said Evan Myrianthopoulos, Managing Partner with GPB Capital responsible for the firm’s Debt Strategies. “Given the strong clinical results demonstrated across Phase 2 and Phase 3 studies, we believe Endari will have a positive impact on SCD patients’ lives. We look forward to helping bring this new treatment to market.”
Torrance, Calif.-based Emmaus develops and commercializes treatments and therapies for rare and orphan diseases. Founded in 2000, Emmaus also conducts tissue-engineering research with the goal of generating healthy cells in a lab environment using a patient’s own cells—which would eliminate the wait for tissue donors and reduce the risk of tissue rejection. Emmaus will use proceeds from GPB Capital’s loan to expand its sales/marketing and research/development efforts associated with its commercial launch of Endari, as well as to refinance existing debt.
“We’re proud to make Endari commercially available as the first new treatment for sickle cell disease in nearly two decades,”ii said Yutaka Niihara, MD, MPH, Chairman and CEO of Emmaus Life Sciences. “GPB Capital’s investment will allow us to make Endari available to patients, helping to improve the lives of people living with this painful condition.”
GPB Capital’s debt investment in Emmaus consists of a $30 million senior secured convertible note with warrants, with $20 million in proceeds delivered upfront and the remaining $10 million to be released in two tranches during the second and third quarters of 2018, subject to Emmaus achieving set revenue targets.
About GPB Capital Holdings, LLC
GPB Capital is a New York-based alternative asset management firm focusing on acquiring income-producing private companies. GPB Capital provides their portfolio companies with the strategic planning, managerial insight, and capital needed to enable strong businesses to achieve the next level of growth and profitability. GPB Capital has over $1.5 billion in assets under management[i] and has acquired or invested in more than 160 portfolio companies. For more information, please visit www.gpb-cap.com.
About Emmaus Life Sciences
Emmaus Life Sciences, Inc. is engaged in the discovery, development and commercialization of innovative treatments and therapies for rare diseases. The company’s research on sickle cell disease was initiated by Yutaka Niihara, MD, MPH, Chairman and CEO of Emmaus, at the Los Angeles Biomedical Research Institute at Harbor-UCLA Medical Center. For more information, please visit www.emmauslifesciences.com.
Endari is indicated to reduce the acute complications of sickle cell disease in adult and pediatric patients 5 years of age and older.
Important Safety Information
The most common adverse reactions (incidence >10%) in clinical studies were constipation, nausea, headache, abdominal pain, cough, pain in extremity, back pain, and chest pain.
Adverse reactions leading to treatment discontinuation included 1 case each of hypersplenism, abdominal pain, dyspepsia, burning sensation, and hot flash.
The safety and efficacy of Endari in pediatric patients with sickle cell disease younger than 5 years of age has not been established.
For more information, please see full Prescribing Information of Endari at www.ENDARIrx.com/Repository/Prescribing%20information.pdf
[i] Which is different and distinct from GPB Capital’s “Regulatory AUM.”