Tuesday, October 28, 2008
BioMimetic says liquidity crunch eased
In an after-5 p.m. announcement yesterday, BioMimetic Therapeutics sought to ensure analysts and investors that its product-development and trials will continue, despite its inability, thus far, to sell auctionable securities based on securitized student loans. BMTI said Deutsche Bank agreed to provide up to $39 million against those securities, a portfolio which BioMimetic carried at about $60MM. The company says the new loan facility, plus $20 million in milestone payments due from its pharma ally, Luitpold, should ensure the company's capacity for continued operations during the next two years. Earlier VNC coverage on BioMimetic, here. A BioMimetic spokesperson recalled yesterday during an interview with VNC that management had raised the liquidity issue during a quarterly analysts call, last summer. In a down market, the company closed down 6.6 percent, yesterday.