Plethora is a publicly listed UK company developing specialist products for the treatment and management of urological disorders. The company has U.S. sales operations for marketing ErecAid (for the treatment of erectile dysfunction) and also has PSD502 and PSD510 in Phase III development for the treatment of premature ejaculation and erectile dysfunction, respectively. The company was seeking non-dilutive capital to advance these two Phase III male health development programs, expand its U.S. sales force and strengthen its balance sheet to facilitate potential product and corporate transactions.
Paul Capital Healthcare structured a transaction through which it purchased for up to $25 million a portion of the revenues generated from Plethora's male health portfolio. The revenue interest will be paid by Plethora on revenues derived from sales of ErecAid, PSD502 and PSD510. In addition, under certain conditions, Plethora will have the option to have Paul Capital Healthcare invest in an equity subscription in 2008.
The agreement provided Plethora with non-dilutive financial resources to help fulfill its growth strategy and maximize value realization from its male health portfolio, including ErecAid. The initial payment of $15 million provided working capital to underwrite Phase III programs for PSD502 and PSD510. The additional financial resources strengthened Plethora’s balance sheet and better positioned the company for success in concluding a licensing agreement for PSD502. Additionally, the investment by Paul Capital Healthcare provided a strong vote of confidence in the commercial prospects of Plethora's male health franchise.
