Relypsa Inc (NASDAQ:RLYP), a biopharmaceutical company, announced the closing of $150 million in aggregate principal amount of senior secured term loans (the “Loans”), led by funds advised by Athyrium Capital Management and joined by HealthCare Royalty Partners. The Loans are senior secured obligations of Relypsa and will mature on April 27, 2022, unless earlier prepaid or repaid in accordance with their terms prior to such date. The Loans bear interest at a rate of 11.5 percent per year, to be paid quarterly beginning June 15, 2016 and include an interest‐only period of 30 months, which may be extended up to 48 months upon meeting certain conditions.
Relypsa intends to use approximately $17 million of the net proceeds to repay all outstanding obligations under its loan and security agreement, as amended, with Oxford Finance LLC and Silicon Valley Bank. Relypsa intends to use the remaining net proceeds to fund ongoing commercialization of Veltassa in the United States and for working capital and general corporate purposes.
“We are pleased to announce a debt financing that enhances our cash position as we focus on developing the hyperkalemia market and bringing Veltassa to patients in need,” said Kristine M. Ball, chief financial officer of Relypsa.
“We are excited to partner with Relypsa to support the ongoing launch of Veltassa,” said Laurent D. Hermouet, partner, Athyrium Capital Management. “Veltassa is the first new medicine in more than 50 years for millions of people with hyperkalemia, and we believe Relypsa has the potential to unlock significant long-term value.” (Original Source)
Shares of Relypsa are down nearly 9% to $15.71 in after-hours trading. RLYP has a 1-year high of $37.45 and a 1-year low of $10.26. The stock’s 50-day moving average is $16.71 and its 200-day moving average is $19.30.
On the ratings front, Relypsa has been the subject of a number of recent research reports. In a report issued on April 26, Mizuho analyst Irina Rivkind Koffler reiterated a Hold rating on RLYP, with a price target of $22, which represents a potential upside of 23.6% from where the stock is currently trading. Separately, on the same day, H.C. Wainwright’s Ed Arce maintained a Buy rating on the stock and has a price target of $36.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Irina Rivkind Koffler and Ed Arce have a total average return of 26% and 10% respectively. Koffler has a success rate of 52% and is ranked #17 out of 3838 analysts, while Arce has a success rate of 33% and is ranked #491.
Overall, one research analyst has rated the stock with a Sell rating, one research analyst has assigned a Hold rating and 9 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $29.75 which is 67.1% above where the stock opened today.
Relypsa, Inc. operates as a bio-pharmaceutical company focused on the development and commercialization of non-absorbed polymeric drugs to treat disorders in the areas of renal, cardiovascular and metabolic diseases. Its products include patiromer, a non-absorbed for the treatment of hyperkalemia and RLY6002, polymer drug discovery technology. The company was founded on October 29, 2007 and is headquartered in Redwood City, CA.