Discovery secures $60M financing deal

Struggling Discovery Labs signed a three year, $60 million financing deal with Kingsbridge Capital, a U.K.-based investment group. Kingsbridge will provide the capital through the purchase of newly issued shares of Discovery's common stock. The company said the deal "significantly improves the company's financial flexibility to support the potential commercialization of Surfaxin," as well as the rest of its respiratory pipeline.

Discovery has been on the ropes since receiving a third approvable letter for Surfaxin, a treatment for premature infant respiratory distress syndrome. The most recent approvable letter did not call for a new trial of the drug and execs said they hope to quickly respond to the FDA's concerns.

- here's Discovery's release for more