Ista Pharmaceuticals Inc., an Irvine-based drug maker, said Friday that three of its long-term shareholders agreed to provide it with up to $65 million worth of funding.
Deerfield Management, a New York-based healthcare investment fund, along with the Sprout Group and Sanderling Ventures, two Bay area firms, are providing the funding through a flexible credit line.
In conjunction with the new funding, Ista paid off $40 million of outstanding debt, said Lauren Silvernail, the drug maker’s chief financial officer.
The deal also allows the drug maker to draw up to an additional $25 million at any time during the next 12 months, Silvernail said.
Ista Chief Executive Vince Anido said the deal culminated five months of assessing the drug maker’s business and strategic options and that the company wanted to ensure it could fund future growth while minimizing shareholder dilution.
Clouds had surrounded Ista since disappointing drug trial results that were announced in April, including an analyst’s warning in late July about the company possibly running out of money.
