NEW YORK--(BUSINESS WIRE)--Deerfield Management Company announced today it has entered into an agreement providing for up to $125 million of debt and equity financing for SHINE Medical Technologies, Inc. The financing is milestone based with the first funding to occur at the completion of an on-going equity financing which is anticipated to close prior to the year-end 2014. This initial funding will enable the Company to complete its application with the Nuclear Regulatory Commission to begin construction of its novel system to produce Molybdenum 99 (moly-99) on a subcritical basis from low enriched uranium. The moly-99 is further processed into the most common medical isotope used in nuclear medicine.
The U.S. currently does not have domestic moly-99 production capability and must import 100 percent of its supply from foreign producers, most of which use weapons-grade uranium in their production processes. The majority of existing foreign supply will disappear in coming years as the U.S. government ceases to supply highly enriched uranium for such purposes. Shine’s facility will be designed to produce more than twenty-five percent of the world’s demand for moly-99.
“The momentum we’ve gained in just the past year demonstrates that SHINE is positioned to become North America’s preeminent supplier of medical isotopes,” said Greg Piefer, CEO of SHINE. “Deerfield’s reputation in the healthcare industry is unparalleled and I’m thrilled they share SHINE’s vision for a reliable, domestic supply of medical isotopes.”
“We are pleased to help advance and catalyze a solution to the looming US moly99 supply shortage through our support of SHINE. We are encouraged with the progress that the SHINE team has made to date on its novel approach to produce moly99 from Low Enriched Uranium,” said Steve Hochberg, Partner at Deerfield.
About SHINE Medical Technologies, Inc.
SHINE is a development-stage company working towards becoming a manufacturer of radioisotopes for nuclear medicine. The SHINE system uses a patented proprietary manufacturing process that offers major advantages over existing and proposed production technologies as it does not require a nuclear reactor, uses less electricity, generates less waste and is compatible with the nation’s existing supply chain for moly-99. Learn more at http://shinemed.com.
About Deerfield
Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy. For more information, please visit www.deerfield.com.