KemPharm gets $60 million funding commitment from Deerfield

KemPharm, a clinical-stage US biopharmaceutical company, has entered into a $60 million financing agreement with an investment fund managed by Deerfield Management, which will help in progressing its lead investigational compound.

Under the terms of the agreement, Deerfield agreed to provide $10 million through a secured senior convertible note, which is convertible into shares of KemPharm's stock, and up to an additional $50 million through a secured senior term debt facility.

At the initial closing of the transaction, which occurred on June 2, Deerfield provided $10 million through the convertible note and an initial $15 million through the term facility. KemPharm may access the remaining $35 million of the term debt upon the completion of certain pre-identified milestones.