Case Study: Nephron Pharmaceuticals Corporation
Nephron Pharmaceuticals Corporation, a privately held company based in Orlando, FL, is a leading manufacturer of nebulized pharmaceutical products used to treat chronic respiratory conditions. Its products are available to patients via retail pharmacies, hospitals, home care companies, and long-term care facilities.
Nephron specializes in blow-fill-seal (BFS) manufacturing, a technology that allows a vial of medication to be formed, filled, and sealed in a continuous process without human intervention in an aseptic environment. The Company is nearing completion of a new, state-of-the-art manufacturing facility in Columbia, SC. It has identified a range of new product opportunities, and the new manufacturing facility will provide additional capacity to facilitate the production of its pipeline. Limitations under its previous credit facility required Nephron to seek additional capital to complete construction and fund its growth plan.
Nephron retained Huron’s investment banking team to arrange a comprehensive refinancing transaction. Huron’s investment banking team worked seamlessly with colleagues from Huron Business
Advisory and Life Sciences to provide a complete financial advisory solution.
As part of the process, Huron Life Sciences prepared an assessment of the Company’s current portfolio and new product pipeline to provide a revenue foundation for the long-term business plan. This effort included primary and secondary research driven evaluations of the clinical, commercial, and regulatory situation facing each of the Company’s key products, which in turn informed and supported the business case and revenue forecasts.
Huron Business Advisory assisted the Company in developing a business plan and projection model, as well as creating and implementing tools and a process to better manage its liquidity. Moreover, they supported Nephron in discussions with its incumbent lending group, as well as facilitated prospective lenders’ due diligence process.
After examining a range of transaction structure alternatives and liquidity requirements, Nephron and Huron’s investment banking team executed a broad but expeditious process that accomplished the
Company’s financing objectives.
Results & Benefits
Within two months of retaining Huron Transaction Advisory, Nephron received and weighed multiple refinancing proposals. Ultimately, Huron successfully arranged a $280 million financing consisting of a $205 million senior credit facility and $75 million of mezzanine notes. The team included Geoffrey Frankel, Principal and Managing Director Huron Transaction Advisory LLC; Marc Tomassi, Managing Director, Dan Wikel, Managing Director, and Brian Buebel, Senior Director, Huron.
Securities transactions provided by Huron Transaction Advisory LLC, member FINRA/SIPC.