Full Press Release Details
Flamel Technologies Announces $15 Million Debt Financing to Advance R&D Efforts
Announces Appointment of Gregg Stetsko as Vice President, Research & Development
LYON, FRANCE - February 7, 2013 - Flamel Technologies (NASDAQ: FLML) today announced that
it has completed a USD$15 million debt financing with Deerfield Management, a current Flamel shareholder. This financing will allow
the Company to continue its investment in R&D projects going forward. The interest rate on the debt is 12.5% and the debt must
be repaid over four years, with the initial payment of principal and accrued interest due in 18 months. Deerfield Management will
also receive a 1.75% royalty on net sales of products resulting from the R&D projects of the former clat Pharmaceuticals,
subject to required regulatory approvals and sales of these products.
"This additional financing from Deerfield Management will provide Flamel with the means to advance
our extensive R&D portfolio in both the U.S. and France as we continue to work to build a world-class specialty pharmaceutical
business, and also demonstrates Deerfield Management's confidence in our approach and strategic focus," said Mike Anderson,
Chief Executive Officer of Flamel. "This financing will not result in dilution to our shareholders. We believe that dilution
to our shareholders at current levels is unacceptable and was not an option. "
Flamel also announced today the appointment of Gregg Stetsko as Vice President, Research & Development.
Mr. Stetsko has over 30 years of experience in the pharmaceutical business, with roles of increasing responsibility at Sandoz,
Sterling Winthrop, Ligand Pharmaceutical, and Amylin, where he was Vice President of Operations and Global Leader for the Amylin-Lilly
Exenatide Alliance. More recently, he was Chief Scientific Officer for Eagle Pharmaceuticals and a Principal at Tahoe Consulting.
Gregg earned a B.S. degree in Pharmacy from the University of Rhode Island and a Ph.D. in Industrial and Physical Pharmacy from
"Gregg is an excellent addition to our management team, and will be an integral component in achieving
our R&D goals," said Mr. Anderson. "He will bring a unique perspective and expertise to Flamel's product
development activities. We look forward to continuing the expansion of our R&D portfolio with Gregg's assistance."
About Flamel Technologies. Flamel Technologies SA's (NASDAQ: FLML) business model is to blend high-value
internally developed products with its leading drug delivery capabilities. The Company has a proprietary pipeline of niche specialty
pharmaceutical products, while its drug delivery platforms are focused on the goal of developing safer, more efficacious formulations
of drugs to address unmet medical needs. Its partnered pipeline includes biological and chemical drugs formulated with its Medusa
and Micropump (and its applications to the development of liquid formulations, i.e. LiquiTime and of abuse-deterrent
formulations Trigger Lock ) proprietary drug delivery platforms. Several Medusa-based products have been successfully tested
in clinical trials. The Company has developed products and manufactures Micropump-based microparticles under FDA-audited GMP guidelines.
Flamel Technologies has collaborations with a number of leading pharmaceutical and biotechnology companies, including GlaxoSmithKline
(Coreg CR , carvedilol phosphate). The Company is headquartered in Lyon, France and has operations in St. Louis, Missouri,
USA, and manufacturing facilities in Pessac, France. Additional information may be found at www.flamel.com.
This release contains "forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, including certain plans, expectations, goals and projections regarding financial results, product
developments and technology platforms. All statements that are not clearly historical in nature are forward-looking, and the words
"anticipate," "assume," "believe," "expect," "estimate," "plan," "will,"
"may," and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements
involve risks, uncertainties and contingencies, many of which are beyond our control that could cause actual results to differ
materially from those contemplated in such forward-looking statements. These risks include risks that the acquisition of clat
Pharmaceuticals may not be successfully integrated or that certain payment acceleration events may be triggered; the new hospital-based
product under FDA review may not be approved or such approval may be delayed; the reacquisition of the exclusive rights to develop
and commercialize IFN- XL worldwide and identification of an alternative strategic partner for the program may not be successful;
the identified opportunities will not result in shorter-term, high value results; clinical trial results may not be positive or
our partners may decide not to move forward; management transitions may be disruptive or not succeed as planned; products in the
development stage may not achieve scientific objectives or milestones or meet stringent regulatory requirements; products in development
may not achieve market acceptance; competitive products and pricing may hinder our commercial opportunities; we may not be successful
in identifying and pursuing opportunities to develop our own product portfolio using Flamel's technology; and the risks associated
with our reliance on outside parties and key strategic alliances. These and other risks are described more fully in Flamel's Annual
Report on Form 20-F for the year ended December 31, 2011 that has been filed with the Securities and Exchange Commission (SEC).
All forward-looking statements included in this release are based on information available at the time of the release. We undertake
no obligation to update or alter our forward-looking statements as a result of new information, future events or otherwise.