Paul Capital Healthcare Commits $100 Million in Initial Funding to Company Established to Assist in Management and Funding of Ph

Paul Capital Healthcare Commits $100 Million in Initial Funding to Company Established to Assist in Management and Funding of Phase III Clinical Trials; Company Announces First Definitive Agreement

NEW YORK, Jan. 5 /PRNewswire/ -- Paul Capital Healthcare today announced that it has agreed to provide up to $100 million to Phase III Development Company S.A.R.L ("P3D"), a company recently established to assist in the management and funding of clinical trials in the European Union. At the same time, P3D announced that it had entered into a definitive agreement with a major global pharmaceutical company to fund the label expansion of a currently approved therapeutic product. Under the terms of the agreement, P3D will assist in the management and funding of phase III clinical trials in additional indications for the product. In return, the pharmaceutical company will provide P3D with development and regulatory milestone payments related to the phase III trials, a percentage of certain out-licensed product royalties, and a percentage of the revenue it generates on the product once it is approved in the additional indications that are the subject of the clinical trials.

"By funding P3D, we can provide a truly novel means of assisting pharmaceutical companies seeking external financing and risk sharing in the development of their late stage drug pipelines. This is truly an important event in the healthcare product finance industry" said Ken Macleod, Ph.D., Partner in the London office of Paul Capital Healthcare. "For years, our industry has been looking for ways to make this type of collaboration work, and we now have the right win-win structure. Companies can now benefit by accessing risk capital to support a compelling growth opportunity while minimizing the impact on internal financial resources, and Paul Capital Healthcare through P3D has an opportunity to participate in a diversified pool of royalties, development milestones and revenue interests with the potential for exciting returns."

About Paul Capital Healthcare and Paul Capital

Through its funds, Paul Capital Healthcare is one of the largest dedicated healthcare investors globally, with more than $1.6 billion in equity capital commitments and debt facilities under management. Combined, the Paul Capital Healthcare funds have invested more than $1 billion in the pharmaceutical, biotechnology, and medical device sectors. These investments are focused on commercial stage companies and products, and consist of investments in the form of royalties, revenue interests, debt and equity. Additional information on Paul Capital Healthcare can be found at www.paulcapitalhealthcare.com. Paul Capital manages nearly $7.3 billion in capital commitments for its three investment platforms, which include Paul Capital Healthcare, Private Equity Secondary Funds and Top Tier Fund-of-Funds. The firm has offices in New York, San Francisco, Paris, London, Hong Kong, and Sao Paolo.