Hercules Technology has agreed to provide Alimera Sciences with up to $35 million in debt financing. Under the agreement, Hercules will immediately advance $10 million to Alimera and provide the rest of the loan ($25 million) if the FDA approves the company's ILUVIEN product on or before October 31, 2014. The initial $10 million in capital will pay off an existing loan payable to Silicon Valley Bank and provide general working capital for Alimera. If the second part of the loan is realized, it will go towards a $25 million milestone payment obligation that will be owed by Alimera.
ILUVIEN is a treatment for diabetic macular edema; implanted in the affected eye, it delivers sub-microgram levels of FAc for up to 36 months. It's the primary product for Alimera, which specializes in ocular diseases and treatments.