DALLAS, July 17, 2023 /PRNewswire/ -- SWK Holdings Corporation (Nasdaq: SWKH) ("SWK" or the "Company"), a life science-focused specialty finance company catering to small and mid-sized commercial-stage companies, today provided a corporate progress update as well as a summary of the achievements of its borrower partners. 

SWK Holdings Corporation (PRNewsfoto/SWK Holdings Corporation)

"During the second quarter of 2023 SWK advanced our 2023 objectives including securing a new four-year credit facility with First Horizon Bank with $45 million committed at close," stated Jody Staggs, President and CEO of SWK.  "This credit facility enables us to be a reliable source of funding for our borrower partners during a time when capital available to the life sciences sector is facing pressure. We remain focused on growing our value per share and during the second quarter we repurchased 272,492 shares for $4.6 million, or $16.88 per share.  Year-to-date we have repurchased over 301,000 shares for $5.1 million, or $17.03 per share. We view repurchasing shares at the current discount to book as a highly accretive use of capital that benefits shareholders."

Mr. Staggs continued: "Despite macroeconomic headwinds, the majority of our portfolio continues to perform as expected, and SWK remains well positioned due to our focus on financing differentiated life science companies that address unmet medical needs, which we believe will capture market share.  Our healthy balance sheet with minimal leverage and ongoing share repurchase program provides us bandwidth to continue to deploy capital in companies that have the potential to drive health care innovation and deliver positive returns to our shareholders."

SWK Holdings Portfolio Updates

Flowonix Medical
During June, Algorithm Sciences, Inc. purchased the assets of Flowonix Medical.  SWK has received $1.5mm of proceeds from the sale and anticipates receiving approximately $0.5 million in additional proceeds from the estate.  SWK will also receive royalties on sales of the Prometra pump for existing indications as well as royalties on sales of Algorithm's PulmoProst therapy for Pulmonary Arterial Hypertension, which uses the Prometra pump. 

SWK will provide an update on the Flowonix finance receivable in our second quarter earnings release. 

SWK Holdings Borrower Partner Achievements

Aziyo Biologics, Inc.

Aziyo Biologics (Nasdaq: AZYO) is a biologics company with a portfolio of regenerative products aimed at improving compatibility between medical devices and the patients they treat.

  • Reported 1Q23 net sales of $13.1 million, a 14% increase compared with 1Q22, and "cash" gross profit margin of 55.0%, an over 1,000 bps improvement compared with 1Q22.
  • Signed a partnership with LeMaitre Vascular to distribute Aziyo's cardiovascular repair portfolio within the U.S., increasing sales representative coverage five-fold.
  • Launched U.S. distribution partnership with Sientra (Nasdaq: SIEN) to drive availability and utilization of SimpliDerm.
  • Held productive meeting with the FDA confirming the path to resubmit the CanGaroo RM 510(k) for pre-market clearance.

Biolase, Inc.

Biolase (Nasdaq: BIOL) is a medical device company that develops, manufactures, and markets proprietary dental laser systems.

  • On May 26, 2023, Biolase announced the closing of $4.5 million underwritten public offering of Series H convertible redeemable preferred stock and warrants.

Biotricity, Inc.

Biotricity (Nasdaq: BTCY) is a medical technology company focused on delivering remote biometric monitoring solutions to the medical and consumer markets.

  • Biotricity reached a record $13 million annualized revenue run rate in April 2023, further extending its growth by 8% from the $12 million run rate it announced in March 2023.

Coflex Royalty

Coflex is an interlaminar stabilization device used after an open decompression that can be performed in various settings, offering a non-fusion treatment option for lumbar spinal stenosis (LSS) patients.

  • On February 28, 2023, Xtant Medical and Surgalign entered into a Definitive Agreement and subsequently closed on the transaction whereby Xtant acquired the Coflex® and Cofix product lines from Surgalign for a total consideration of $17 million.

Eton Pharmaceuticals, Inc.

Eton (Nasdaq: ETON) is an innovative pharmaceutical company focused on developing and commercializing treatments for rare diseases.

  • Reported 1Q23 product and royalty revenue of $5.3 million, up 144% from 1Q22, and gross margin of 63.0%, driven in part by record sales of Carglumic Acid and Alkindi Sprinkles.
  • Launched Betaine Anhydrous for the treatment of homocystinuria.

Exeevo, Inc.

Exeevo is a global enterprise SaaS leader for life sciences focused on elevating and transforming customer experiences.

  • In June 2023 announced Derek Evans as new CEO. Mr. Evans was previously Senior Vice President of Growth at Exeevo.

FC2 Royalty

FC2 Female Condom is a female-initiated birth control offering dual protection against STIs and unwanted pregnancy.

  • In April 2023, the Company entered into a supply agreement with Afaxys Group Services, LLC (AGS), a healthcare company, to offer FC2 Female Condom® through the AGS Group Purchasing Organization (GPO) for up to 31 million individuals that depend on public health centers for essential healthcare.

MedMinder

MedMinder is a leading fully integrated, end-to-end pharmacy, medication adherence, and connected care solution for seniors and polypharmacy patients.

  • Announced that Troy Hilsenroth was appointed as Chief Executive Officer. Mr. Hilsenroth joined MedMinder after serving as CEO of Biolog-id, where he developed a new SaaS platform and led the company through its preparation to go public.

MolecuLight, Inc.

MolecuLight Inc. is a leader in point-of-care fluorescence imaging that locates and detects elevated, pathogenic bacterial loads in and around wounds.

  • Released results of a study (which entailed treatment decisions made on 1,000 chronic wounds at 211 wound-care facilities across 36 U.S. states) that showed its product drove wound care treatment plan revisions in over 50% (528/1000) of cases in the study.

Neolight, Inc.

NeoLight is a medical device company focused on developing and marketing technologies for treating preventable conditions in the newborn care market.

  • In April 2023, signed an agreement to acquire key assets of interVIEW Medical Systems ROP (retinopathy-of-prematurity) risk management education course and ROP risk management clinical exam, collectively called the ROP Certification Program.

About SWK Holdings Corporation
SWK Holdings Corporation is a life science focused specialty finance company partnering with small- and mid-sized commercial-stage healthcare companies. SWK provides non-dilutive financing to fuel the development and commercialization of lifesaving and life-enhancing medical technologies and products. SWK's unique financing structures provide flexible financing solutions at an attractive cost of capital to create long-term value for all SWK stakeholders. SWK's solutions include structured debt, traditional royalty monetization, synthetic royalty transactions, and asset purchases typically ranging in size from $5.0 million to $25.0 million.  SWK also owns Enteris BioPharma, whose Peptelligence® and ProPerma® drug delivery technologies create oral formulations of peptide-based and BCS class II, III, and IV small molecules. Additional information on the life science finance market is available on the Company's website at www.swkhold.com.

Safe Harbor Statement 
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intend," "guidance," "future" or similar expressions are forward-looking statements. Because these statements reflect SWK's current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties. Investors should note that many factors, as more fully described under the caption "Risk Factors" and elsewhere in SWK's Form 10-K, Form 10-Q and Form 8-K filings with the Securities and Exchange Commission and as otherwise enumerated herein, could affect the Company's future financial results and could cause actual results to differ materially from those expressed in such forward-looking statements. The forward-looking statements in this press release are qualified by these risk factors. These are factors which, individually or in the aggregate, could cause the Company's actual results to differ materially from expected and historical results. You should not place undue reliance on any forward-looking statements, which speak only as of the date they are made. We assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

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