Paratek Pharmaceuticals Receives $60 Million Non-Recourse Loan from R-Bridge Healthcare Investment Advisory, Ltd., an affiliate of CBC Group

Proceeds Used to Prepay Outstanding Loan with Hercules Capital, Inc.

BOSTON, Jan. 04, 2021 (GLOBE NEWSWIRE) -- Paratek Pharmaceuticals, Inc. (Nasdaq: PRTK), a commercial-stage biopharmaceutical company focused on the development and commercialization of novel life-saving therapies for life-threatening diseases or other public health threats for civilian, government and military use, today announced the Company entered into a $60 million non-recourse loan agreement with an affiliate of R-Bridge Healthcare Investment Advisory (the R-Bridge Loan) that will be repaid using all proceeds of royalties from the Company’s License and Collaboration Agreement with Zai Lab (Shanghai) Co., Ltd. (Zai Lab) and a 2.5% revenue interest from the Company’s U.S. net sales of NUZYRA with an annual cap of $10 million. The R-Bridge Loan has a maturity date of 12 years from the date of execution.

The net proceeds of the loan, together with cash on hand, was used to prepay in full all obligations outstanding under the Company’s Amended and Restated Loan and Security Agreement with Hercules Capital, Inc. (the Hercules Senior Secured Debt).

In May 2020, Zai Lab, announced its New Drug Application (NDA) for omadacycline for the treatment of community-acquired bacterial pneumonia (CABP) and acute bacterial skin and skin structure infections (ABSSSI) had been accepted with priority review in China. Upon Zai Lab’s regulatory approval, anticipated in the first half of 2021, Paratek will receive a $6.0 million milestone payment. All milestone payments under the Zai Lab License and Collaboration Agreement are excluded from the R-Bridge Loan and are retained by the Company.

Key Highlights

• The R-Bridge Loan is non-recourse to the Company other than the Zai Lab royalties and the U.S. NUZYRA revenue interest.
       - The maturity date extends the repayment and amortization period up to nine years beyond that of the now-retired Hercules Senior Secured Debt, providing greater financial flexibility for the Company.
       - Under certain circumstances, the revenue interest rate payable on the U.S. NUZYRA net sales may increase up to either 3.5% or 5% and the annual cap may increase from $10 million to $12 million.
       - All milestone payments under the License and Collaboration Agreement with Zai Lab are retained by the Company.
       - The loan may be prepaid in whole or in part at any time without premium or penalty.
• The Hercules Senior Secured Debt has been retired.

About Paratek Pharmaceuticals, Inc.