Relypsa sinks after debt financing

Relypsa Inc. (NASDAQ:RLYP) sank $3.32 (19%) to $14 on Wednesday after it closed a $150 million debt offering underwritten by Athyrium Capital Management and Healthcare Royalty Partners. The debt matures on April 27, 2022, and bears 11.5% annual interest.

The company has earmarked most of the proceeds for commercialization of Veltassa patiromer, its high-capacity oral potassium binder to treat hyperkalemia. FDA approved Veltassa in October and the company launched the drug in December (see BioCentury Extra, Oct. 21, 2015). ...