Flamel Technologies Announces $15 Million Debt Financing to Advance R&D Efforts

Flamel Technologies Announces $15 Million Debt Financing to Advance R&D Efforts 
Announces Appointment of Gregg Stetsko as Vice President, Research &
LYON, FRANCE -- (Marketwire) -- 02/07/13 --  Flamel Technologies
(NASDAQ: FLML) today announced that it has completed a USD$15 million
debt financing with Deerfield Management, a current Flamel
shareholder. This financing will allow the Company to continue its
investment in R&D projects going forward. The interest rate on the
debt is 12.5% and the debt must be repaid over four years, with the
initial payment of principal and accrued interest due in 18 months.
Deerfield Management will also receive a 1.75% royalty on net sales
of products resulting from the R&D projects of the former Eclat
Pharmaceuticals, subject to required regulatory approvals and sales
of these products.  
"This additional financing from Deerfield Management will provide
Flamel with the means to advance our extensive R&D portfolio in both
the U.S. and France as we continue to work to build a world-class
specialty pharmaceutical business, and also demonstrates Deerfield
Management's confidence in our approach and strategic focus," said
Mike Anderson, Chief Executive Officer of Flamel. "This financing
will not result in dilution to our shareholders. We believe that
dilution to our shareholders at current levels is unacceptable and
was not an option." 
Flamel also announced today the appointment of Gregg Stetsko as Vice
President, Research & Development. Mr. Stetsko has over 30 years of
experience in the pharmaceutical business, with roles of increasing
responsibility at Sandoz, Sterling Winthrop, Ligand Pharmaceutical,
and Amylin, where he was Vice President of Operations and Global
Leader for the Amylin-Lilly Exenatide Alliance. More recently, he was
Chief Scientific Officer for Eagle Pharmaceuticals and a Principal at
Tahoe Consulting. Gregg earned a B.S. degree in Pharmacy from the
University of Rhode Island and a Ph.D. in Industrial and Physical
Pharmacy from Purdue University. 
"Gregg is an excellent addition to our management team, and will be
an integral component in achieving our R&D goals," said Mr. Anderson.
"He will bring a unique perspective and expertise to Flamel's product
development activities. We look forward to con
tinuing the expansion
of our R&D portfolio with Gregg's assistance."  
About Flamel Technologies. Flamel Technologies SA's (NASDAQ: FLML)
business model is to blend high-value internally developed products
with its leading drug delivery capabilities. The Company has a
proprietary pipeline of niche specialty pharmaceutical products,
while its drug delivery platforms are focused on the goal of
developing safer, more efficacious formulations of drugs to address
unmet medical needs. Its partnered pipeline includes biological and
chemical drugs formulated with its Medusa(R) and Micropump(R) (and
its applications to the development of liquid formulations, i.e.
LiquiTime(R) and of abuse-deterrent formulations Trigger Lock(TM))
proprietary drug delivery platforms. Several Medusa-based products
have been successfully tested in clinical trials. The Company has
developed products and manufactures Micropump-based microparticles
under FDA-audited GMP guidelines. Flamel Technologies has
collaborations with a number of leading pharmaceutical and
biotechnology companies, including GlaxoSmithKline (Coreg CR(R),
carvedilol phosphate). The Company is headquartered in Lyon, France
and has operations in St. Louis, Missouri, USA, and manufacturing
facilities in Pessac, France. Additional information may be found at
This release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995, including
certain plans, expectations, goals and projections regarding
financial results, product developments and technology platforms. All
statements that are not clearly historical in nature are
forward-looking, and the words "anticipate," "assume," "believe,"
"expect," "estimate," "plan," "will," "may," and similar expressions
are generally intended to identify forward-looking statements. All
forward-looking statements involve risks, uncertainties and
contingencies, many of which are beyond our control that could cause
actual results to differ materially from those contemplated in such
forward-looking statements. These risks include risks that the
acquisition of Eclat Pharmaceuticals may not be successfully
integrated or that certain payment acceleration events may be
triggered; the new hospital-based product under FDA review may not be
approved or such approval may be delayed; the reacquisition of the
exclusive rights to develop and commercialize IFN-β XL worldwide
and identification of an alternative strategic partner for the
program may not be successful; the identified opportunities will not
result in shorter-term, high value results; clinical trial results
may not be positive or our partners may decide not to move forward;
management transitions may be disruptive or not succeed as planned;
products in the development stage may not achieve scientific
objectives or milestones or meet stringent regulatory requirements;
products in development may not achieve market acceptance;
competitive products and pricing may hinder our commercial
opportunities; we may not be successful in identifying and pursuing
opportunities to develop our own product portfolio using Flamel's
technology; and the risks associated with our reliance on outside
parties and key strategic alliances. These and other risks are
described more fully in Flamel's Annual Report on Form 20-F for the
year ended December 31, 2011 that has been filed with the Securities
and Exchange Commission (SEC). All forward-looking statements
included in this release are based on information available at the
time of the release. We undertake no obligation to update or alter
our forward-looking statements as a result of new information, future
events or otherwise. 
Investor Contact:
Bob Yedid 
ICR Inc.
(646) 277-1250 
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