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Nov28CRG Provides Investment Update, Committing $881 Million of New Capital to Healthcare Investments Over the Last 12 Months


-- Continues momentum executing growth capital investment strategy to commercial-stage healthcare companies --

 

Boulder, Colo. – November 28, 2017 – CRG, a preeminent healthcare-focused investment firm, today announced cumulative financing commitments of $881 million in 11 new commercial-stage healthcare investments over the last 12 months. In addition, the firm generated realizations from eight portfolio company liquidity events during the same 12-month period, including M&A transactions and refinancing activities, resulting in a total of more than $425 million in proceeds to CRG and its institutional partners.

 

“We continue to selectively deploy the capital of our latest fund in commercial-stage healthcare companies, which are launching products and services aimed at improving healthcare in the US and abroad,” said Nate Hukill, President of CRG. “Further, we underwrote larger transactions for more mature companies with average initial commitments increasing by 137 percent over the last five years. Finally, several of our portfolio companies experienced positive catalysts, resulting in significant realizations for our institutional partners. These exits represent the culmination of great partnerships with our portfolio companies and reinforce the opportunity to create value for equity shareholders by utilizing debt capital from CRG to propel growth and achieve great outcomes.”

 

CRG increased its average initial commitment size per investment to $83 million in 2017, a 14 percent increase since 2016 and an 89 percent increase since 2014. Recent new investment commitments to highlight include:

 

  • Synergy Pharmaceuticals (Nasdaq: SGYP) – A biopharmaceutical company focused on the development and commercialization of novel gastroenterology therapies completed a $300 million debt commitment and CRG funded an initial tranche of $100 million in September 2017. The investment provided non-dilutive capital with a long-term structure that offered an attractive alternative to traditional equity linked financings.

 

  • BioDelivery Sciences International (Nasdaq: BDSI) – A specialty pharmaceutical company, with a focus in the areas of pain management and addiction medicine, entered into a $75 million senior credit facility with CRG. The facility consists of $45 million drawn at closing and the ability to access additional funding of up to $30 million in two tranches based on the achievement of certain milestones. The investment provided the company with a significant amount of non-dilutive capital at a time when they believed their equity was undervalued.

 

  • Strongbridge Biopharma (Nasdaq: SBBP) – A global commercial-stage biopharmaceutical company focused on the development and commercialization of therapies for rare and orphan diseases with significant unmet needs signed a $50 million senior credit facility with CRG to raise capital and refinance an existing short-term venture debt facility. In addition, CRG invested $3 million in the company’s common equity. The investment provided sufficient resources to launch their commercial product.

 

  • T2 Biosystems (Nasdaq: TTOO) – A tools & diagnostics company developing innovative products that provide a significant cost benefit for the treatment of sepsis, one of the most expensive conditions to treat in the healthcare system. T2 Biosystems is an emerging leader in the field of in vitro diagnostics, with two FDA-approved products, that has the ability to provide test results faster than any competitor on the market today. The company is also developing their technology for lyme disease and hemostasis profiling. CRG’s $50 million investment provided the company with the long-term flexibility to effectively commercialize their products in the market.

 

Other recent CRG financings include investments in CleanSlate Addiction Treatment Centers, Earlens, MDLIVE, Viveve Medical, Advanced ICU, Intrinsic Therapeutics and Endoceutics. Regarding exits, CRG experienced significant momentum recognizing eight realizations of portfolio company investments. In October 2017, Neotract was acquired by Teleflex (NYSE: TFX) in a transaction valued at $1.1 billion.

 

Luke Düster, Managing Director at CRG, added, “We have diversified our team’s investment experience, having partnered with more than 45 companies across the healthcare spectrum, including pharmaceutical, medical device, tools & diagnostics, healthcare services and healthcare IT companies, all geared towards improving healthcare outcomes and often at lower costs to the healthcare system. As we look forward to 2018, we remain focused on supporting our existing portfolio companies with additional growth capital and working with new partners that are bringing innovative products and services to market.”

 

CRG provides long-term growth capital to commercial-stage healthcare companies and is currently investing out of its third private credit fund with over $1.6 billion of committed capital. CRG continues to execute a disciplined strategy and focus on investing in companies that are at the forefront of three dominant trends within healthcare. These trends include increasing focus on healthcare cost reduction, the rise of personalized medicine, and shifting demographics, including aging populations and increased obesity rates in developed economies.

 

About CRG

 

CRG is a premier healthcare-focused investment firm with more than $3.0 billion of assets under management across more than 45 portfolio companies. The firm seeks to commit between $20 to $300 million in each investment across the healthcare spectrum, including: medical devices, biopharmaceuticals, tools & diagnostics, services and information technology. CRG provides growth capital in the form of long-term debt and equity to support innovative, commercial-stage healthcare companies that address large, unmet medical needs. The firm partners with public and private companies to provide flexible financing solutions and world-class support to achieve exceptional growth objectives with minimal dilution. CRG maintains offices in Boulder, Houston and New York. For more information, please visit www.crglp.com.

 

Disclosure


This release does not constitute an offer to sell or buy any securities and may not be used or relied upon in connection with any offer or sale of securities. It does not constitute a solicitation of clients and may not be used or relied upon in connection with any solicitation of clients. This release is qualified in its entirety by reference to the offering materials of a specific investment opportunity. Neither the Fund nor CRG makes any representation or warranty, either express or implied, as to the accuracy, completeness or reliability of the information contained in this release. Statements in this release are made as of the date hereof unless stated otherwise herein, and the delivery of this release at any time shall not under any circumstances create an implication that the information contained herein is correct as of any time subsequent to such date. Neither the Fund nor CRG has any obligation to update the information contained in this release, including in the event that any such information becomes inaccurate. No person has been authorized to give any information or to make any representation concerning the matters in this release other than the information explicitly contained in this release, and, if given or made, such information or representation must not be relied upon as having been authorized. CRG and its affiliates reserve the right to modify any of the terms of any offering.

 

 Certain information contained in this release constitutes "forward-looking statements (as defined in the U.S. private securities litigation reform act of 1995)," which can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "seeks," "plans," "scheduled to", "target," "anticipate," "project," "estimate," "intend," "continue" or "believe" or the negatives thereof or other variations thereon or other comparable terminology. Due to various known or unknown risks and uncertainties, including those described in this release and the offering materials of a specific investment opportunity, actual events or results or the actual performance may differ materially from those reflected or contemplated in such forward-looking statements. As a result, you are cautioned not to place undue reliance on these forward-looking statements. No representation or warranty is made as to future performance or such forward-looking statements. The Fund and CRG expressly disclaim any and all liability relating to or resulting from the use of this release.

 

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CRG Contact:

 

David Carter
Managing Director
713-209-7357
dcarter@crglp.com

 

Media Contact:


Nick Rust
212.279.3115 ext. 252
nrust@prosek.com