Document:

EXHIBIT 10.3

 

 

Supernus to Receive $30 Million in Non-Dilutive Royalty Deal

 

Rockville, MD, July 8, 2014 - Supernus Pharmaceuticals, Inc. (NASDAQ: SUPN), today announced the execution of a royalty acquisition agreement (“Agreement”) with HealthCare Royalty Partners (“HC Royalty”). Per the Agreement, HC Royalty will make a $30 million cash payment to Supernus in consideration for acquiring from Supernus certain royalty and milestone rights related to the commercialization of OrenitramTM (treprostinil) Extended-Release Tablets by Supernus’ partner United Therapeutics Corporation. Supernus will retain full ownership of the Royalty Rights after a certain threshold has been reached per the terms of the Agreement.

 

“We are pleased to have completed this royalty transaction, which strengthens our balance sheet and enhances our financial flexibility”, said Jack Khattar, President and Chief Executive Officer of Supernus. “The transaction allows us to partially monetize our royalty stream from OrenitramTM for a significant cash consideration while positioning Supernus to further benefit from the future upside potential of the product.”

 

Orenitram is indicated for the treatment of pulmonary arterial hypertension (PAH) in WHO Group I patients to improve exercise capacity. The product was recently launched by United Therapeutics Corporation (NASDAQ:  UTHR) in the United States market. Supernus developed the extended release formulation of Orenitram under a Development and License Agreement with United Therapeutics using its EnSoTrol, novel osmotic technology platform. Per the license agreement between Supernus and United Therapeutics, Supernus is entitled to certain milestone fees and royalties (“Royalty Rights”) associated with the commercialization of the product worldwide.

 

“As a result of this royalty transaction, our cash position has been significantly strengthened giving us additional operational flexibility and expanding our capacity for potential business development activities,” added Jack A. Khattar.

 

“Orenitram is a meaningful advance in the treatment of pulmonary arterial hypertension, as the first FDA approved orally administered prostacyclin therapy,” commented Todd C. Davis, Founding Managing Director at HC Royalty. “We were pleased to structure a deal for Supernus that would enable them to financially benefit from the future success of Orenitram.”

 

For full patient information and full prescribing information, visit:

www.orenitram.com/dtc/pdf/Orenitram_Full_Prescribing_Information.pdf.

 

OrenitramTM is a trademark of United Therapeutics Corporation.

 

About Supernus Pharmaceuticals, Inc.

 

Supernus Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system, or CNS, diseases. The Company has two marketed products for epilepsy, Oxtellar XR® (extended-release oxcarbazepine) and Trokendi XR® (extended-release topiramate). The Company is also developing several product candidates in psychiatry to address large market opportunities in ADHD, including ADHD patients with impulsive aggression. These product candidates include SPN-810 for impulsive aggression in ADHD and SPN-812 for ADHD.

 

 

About HealthCare Royalty Partners

 

HealthCare Royalty Partners is a global healthcare investment firm focused on providing financing solutions to healthcare companies and royalty owners with interests in approved pharmaceutical and medical device products. The firm’s senior investment team has participated in over 50 royalty financings valued at over $2 billion over the past decade. For more information, visit www.healthcareroyalty.com.

 

Forward Looking Statements

 

This press release contains forward-looking statements regarding the potential net sales of OrenitramTM and United Therapeutics’ willingness and ability to pay future royalties and milestone payments as they become due under the License Agreement with Supernus, or the significance of such payments. Actual results may differ materially from those in these forward-looking statements as a result of various factors, including, but not limited to, risks regarding United Therapeutics Corporation’s ability to commercialize the product successfully, whether physicians will prescribe and patients will use the product, and competition in the market. For a further description of these and other risks facing the Company, please see the risk factors described in the Company’s Annual Report Form 10-K that was filed with the United States Securities and Exchange Commission on March 21, 2014 under the caption “Risk Factors”. Forward-looking statements speak only as of the date of this press release, and the company undertakes no obligation to update or revise these statements, except as may be required by law.

 

CONTACTS:

Jack A. Khattar, President and CEO

Gregory S. Patrick, Vice President and CFO

Supernus Pharmaceuticals, Inc.

Tel: (301) 838-2591

 

Or

 

INVESTOR CONTACT:

COCKRELL GROUP

877.889.1972

investorrelations@thecockrellgroup.com

cockrellgroup.comQ2 2014 Exhibit10.1

EXHIBIT 10.1

THIRD OMNIBUS AMENDMENT TO 
FOURTH AMENDED AND RESTATED RECEIVABLES 
FUNDING AND ADMINISTRATION AGREEMENT 
AND
THIRD AMENDED AND RESTATED RECEIVABLES 
SALE AND SERVICING AGREEMENT

This THIRD OMNIBUS AMENDMENT (this “Amendment”), dated as of April 25, 2014, is entered into by and among SIT FUNDING CORPORATION (the “Borrower”), SYNNEX CORPORATION (“Synnex”), PNC BANK, NATIONAL ASSOCIATION (“PNC”), as a Committed Lender, PNC, as Managing Agent for the PNC Lender Group, SUMITOMO MITSUI BANKING CORPORATION (“SMBC”), as a Committed Lender, MANHATTAN ASSET FUNDING COMPANY LLC (“MAFC”), as a Discretionary Lender, SMBC NIKKO SECURITIES AMERICA, INC. (“SMBC Nikko”), as Administrator for the SMBC Discretionary Lender and as Managing Agent for the SMBC Lender Group, LIBERTY STREET FUNDING LLC (“Liberty Street”), as a Discretionary Lender, and THE BANK OF NOVA SCOTIA (“BNS”), as a Committed Lender, as Administrative Agent for the Committed Lenders and Discretionary Lenders, as Administrator for the BNS Discretionary Lender and as Managing Agent for the BNS Lender Group and is the (i) SIXTH AMENDMENT TO THE FOURTH AMENDED AND RESTATED RECEIVABLES FUNDING AND ADMINISTRATION AGREEMENT (as described below) and (ii) NINTH AMENDMENT TO THE THIRD AMENDED AND RESTATED RECEIVABLES SALE AND SERVICING AGREEMENT (as described below). 
RECITALS
A.WHEREAS, the Borrower, PNC, SMBC, MAFC, SMBC Nikko, Liberty Street and BNS are parties to that certain Fourth Amended and Restated Receivables Funding and Administration Agreement, dated as of November 12, 2010 (together with all exhibits and schedules thereto, and as heretofore amended, restated or supplemented, the “RFA”);
B.    WHEREAS, each of the persons signatory thereto from time to time as Originators, Synnex, in its capacity as servicer thereunder, and the Borrower, as buyer are parties to that certain Third Amended and Restated Receivables Sale and Servicing Agreement, dated as of January 23, 2009 (together with all exhibits and schedules thereto, and as heretofore amended, restated or supplemented, the “SSA”); and
C.    WHEREAS, the Borrower, PNC, SMBC, MAFC, SMBC Nikko, Liberty Street and BNS desire to amend and modify certain terms of the RFA as hereinafter set forth and the Borrower, Synnex and BNS desire to amend and modify certain terms of the SSA, and to make certain other changes to the RFA, the SSA and the Related Documents, as hereinafter set forth.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

	
			
	 
	 
	 

709109919 10435078

1.    Certain Defined Terms.  Capitalized terms that are used herein without definition and that are defined in Annex X to the RFA shall have the same meanings herein as in Annex X to the RFA.
2.    Amendments to Annex X to the RFA and the SSA.  
(a)    The definition of “Excluded Receivable” in Annex X to the RFA and the SSA is hereby amended and restated in its entirety as follows:
“Excluded Receivable” shall mean (i) any Mexico Receivable or (ii) any Receivable owing by the Obligor of an Originator (the “Reseller”) arising directly as a result of a separate, but corresponding, Receivable originated by such Reseller and where the Obligor of such Reseller (the “End User”) with respect to such corresponding Receivable (x) has been instructed to make payment of  all amounts owing in respect of such Receivable owed by the End User to the Reseller, directly to the Originator or the Borrower (which may be in the name of the Reseller) and (y) is not  relieved of its obligation with respect to such Receivable unless and until payment of all amounts owing to the Reseller with respect thereto is made directly to the Originator or the Borrower in accordance with the terms of the sales contract or purchase order and other documents between the Originator and the Reseller.
3.    Representations and Warranties.  Each of Synnex and the Borrower represents and warrants for itself as follows:
(a)    It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.
(b)    This Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).
(c)    No consent, approval, authorization or order of, or filing (except for any filing required by federal securities laws), registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment that has not already been obtained.
(d)    The execution and delivery of this Amendment does not (i) violate, contravene or conflict with any provision of its organization documents or (ii) violate, contravene or conflict in any material respect with any laws applicable to such Person.
(e)    Immediately after giving effect to this Amendment, (i) the representations and warranties of the Borrower set forth in the RFA and Synnex set forth in the SSA shall be true 

	
			
	 
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709109919 10435078

and correct (other than any such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof, in which case, such representations and warranties shall be true and correct as of such other date) and (ii) no Termination Event or Incipient Termination Event shall have occurred and be continuing.
4.    Effect of Amendment.  Except as expressly amended and modified by this Amendment, all provisions of the RFA and the SSA shall remain in full force and effect. After this Amendment becomes effective, all references in the RFA and the SSA to “this Agreement”, “hereof”, “herein” or words of similar effect referring to the RFA or the SSA, as applicable, shall be deemed to be references to the RFA and the SSA as amended by this Amendment. This Amendment shall not be deemed to expressly or impliedly waive, amend or supplement any provision of the RFA or the SSA other than as set forth herein.
5.    Effectiveness.  This Amendment shall become effective as of the date hereof (the “Effective Date”) receipt by the Administrative Agent of (i) counterparts of this Amendment (whether by facsimile or otherwise) executed by each of the other parties hereto and (ii) counterparts of the Fee Letter (whether by facsimile or otherwise) executed by each of the other parties thereto.
6.    Counterparts.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, and each counterpart shall be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.
7.    Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
8.    Severability.  Each provision of this Amendment shall be severable from every other provision of this Amendment for the purpose of determining the legal enforceability of any provision hereof, and the unenforceability of one or more provisions of this Amendment in one jurisdiction shall not have the effect of rendering such provision or provisions unenforceable in any other jurisdiction.
9.    Section Headings.  The various headings of this Amendment are inserted for convenience only and shall not affect the meaning or interpretation of this Amendment or the RFA or the SSA or any provision hereof or thereof.
[Signature Pages Follow]

	
			
	 
	3
	 

709109919 10435078

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.
SIT FUNDING CORPORATION, 
as the Borrower 
 
 
By:_/s/ Simon Y. Leung______________ 
Name:  Simon Y. Leung 
Title:  Corporate Secretary

SYNNEX CORPORATION 
 
 
 
By:_/s/ Simon Y. Leung______________ 
Name:  Simon Y. Leung 
Title:  Corporate Secretary

709109919 10435078    S-1    Third Omnibus Amendment (Synnex)

THE BANK OF NOVA SCOTIA,  
as a Lender, as Administrator for 
Liberty Street Funding LLC, 
as Managing Agent for the 
BNS Lender Group and 
as the BNS Committed Lender

By: /s/ Diane Emanuel             
Name:     Diane Emanuel 
Title:    Managing Director 

LIBERTY STREET FUNDING LLC,  
as a Lender and the BNS Discretionary Lender

By: /s/ Jill A. Russo                  
Name:    Jill A. Russo 
Title:    Vice President 

THE BANK OF NOVA SCOTIA, 
as Administrative Agent

By: /s/ Diane Emanuel              
Name:     Diane Emanuel 
Title:    Managing Director

709109919 10435078    S-2    Third Omnibus Amendment (Synnex)

PNC BANK, NATIONAL ASSOCIATION,  
as Managing Agent for the PNC Lender Group
 
 
By: /s/ Mark Falciane                  
Name:    Mark Falciane 
Title:    Executive Vice President 

PNC BANK, NATIONAL ASSOCIATION,  
as a Lender and as the PNC Committed Lender 
 
 
By: /s/ Mark Falciane                  
Name:    Mark Falciane 
Title:    Executive Vice President 

709109919 10435078    S-3    Third Omnibus Amendment (Synnex)

SMBC NIKKO SECURITIES AMERICA, INC.,  
as Administrator for 
Manhattan Asset Funding Company LLC 
and as Managing Agent for the  
SMBC Lender Group 
 
 
By: /s/ Yukimi Konno                  
Name:    Yukimi Konno 
Title:    Executive Director

SUMITOMO MITSUI BANKING CORPORATION,  
as a Lender and the SMBC Committed Lender 
 
 
By: /s/ Hiroyuki Suzuki              
Name:    Hiroyuki Suzuki 
Title:    Executive Director

MANHATTAN ASSET FUNDING COMPANY LLC, as a Lender and 
the SMBC Discretionary Lender 

By:    MAF RECEIVABLES CORP., 
its sole member

By: /s/ Dewen Tam                  
Name:    Dewen Tam 
Title:    Vice President

709109919 10435078    S-4     Third Omnibus Amendment (Synnex)

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