Exhibit 99.3
DISCOVERY LABORATORIES EXPANDS ITS CAPITAL LEASE FINANCING FACILITY
WITH GE HEALTHCARE FINANCIAL SERVICES TO APPROXIMATELY $9 MILLION
DOYLESTOWN, PA --NOVEMBER 2, 2004 -- DISCOVERY LABORATORIES, INC. (NASDAQ: DSCO)
today announced that available funds under its existing capital lease financing
facility with GE Healthcare Financial Services have been increased by up to $6.5
million. Including the $2.5 million currently employed under the existing
arrangement, Discovery's lease line is now approximately $9 million.
Under the terms of the expanded financing arrangement, $5 million is immediately
available to Discovery while an additional $1.5 million remains subject to FDA
approval to market the company's lead product Surfaxin(R), for the prevention of
Respiratory Distress Syndrome (RDS) in premature infants. Subject to the terms
of the lease facility, GE will make the finances available for certain capital
equipment purchases including manufacturing, information technology systems,
laboratory, office and other related capital assets. The funds may be drawn down
through September 2005 and are payable over three or four years, depending on
the equipment.
John G. Cooper, Executive Vice President and Chief Financial Officer of
Discovery commented, "The continued support from GE Healthcare Financial
Services secures an important component of our financing strategy. Our business
plan for 2005 includes the potential commercial launch of our lead product,
Surfaxin for Respiratory Distress Syndrome in premature infants, and advancing
the clinical development of our Acute Respiratory Distress Syndrome and key
aerosol Surfactant Replacement Therapy programs. This capital lease financing
facility will be used to invest in additional information technology systems
such as sales, materials requirements planning and medical safety monitoring to
support potential commercialization, and manufacturing capabilities for planned
commercial and clinical requirements."
ABOUT DISCOVERY LABORATORIES
Discovery Laboratories, Inc. is a biopharmaceutical company developing its
proprietary surfactant technology as Surfactant Replacement Therapies (SRT) for
respiratory diseases. Surfactants are compositions produced naturally in the
lungs and essential for breathing. Discovery's technology produces an engineered
version of natural human lung surfactant that is designed to closely mimic the
essential properties of human lung surfactant. Discovery believes that through
its technology, pulmonary surfactants have the potential, for the first time, to
be developed into a series of respiratory therapies for patients where there are
few or no approved therapies available. Discovery has filed a New Drug
Application with the FDA and a Marketing Authorization Application with the EMEA
for clearance to market Surfaxin, the Company's lead product, for the prevention
and treatment of Respiratory Distress Syndrome in premature infants.
More information about Discovery is available on the Company's Web site at
www.DiscoveryLabs.com.
ABOUT GE HEALTHCARE FINANCIAL SERVICES, LIFE SCIENCE FINANCE
GE Healthcare Financial Services, a unit of GE Commercial Finance, is the
premier provider of capital, financial solutions and related services for the
global healthcare market. With $13 billion in assets, GE Healthcare Financial
Services offers a full range of financing capabilities from equipment leasing
and real estate financing to working capital lending, vendor programs and
acquisition financing. The Life Science Finance group delivers innovative and
flexible financing solutions to help customers preserve their cash and
liquidity. For over a decade, GE Healthcare Financial Services has assisted life
science companies large and small, from the first venture round to post-IPO.
With a portfolio exceeding $400 million, GE has partnered with over 300
companies throughout the United States, Canada and Europe. For more information,
visit www.GEHealthcareFinance.com.
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To the extent that statements in this press release are not strictly historical,
including statements as to business strategy, outlook, objectives, future
milestones, plans, intentions, goals, future financial conditions, future
collaboration agreements, the success of the Company's product development,
events conditioned on stockholder or other approval, or otherwise as to future
events, such statements are forward-looking, and are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. The
forward-looking statements contained in this release are subject to certain
risks and uncertainties that could cause actual results to differ materially
from the statements made. Among the factors which could affect the Company's
actual results and could cause results to differ from those contained in the
forward-looking statements contained herein are the risk that financial
conditions may change, risks relating to the progress of the Company's research
and development, the risk that the Company will not be able to raise additional
capital or enter into additional collaboration agreements (including strategic
alliances for our aerosol and Surfactant Replacement Therapies), risk of delay
in the Company's preparation and filing of applications for regulatory approval,
risk of delay in the FDA's or other health regulatory authorities' approval of
any applications filed by the Company, risks that any such regulatory authority
will not approve the marketing and sale of a drug product even after acceptance
of an application filed by the Company for any such drug product, risks relating
to the ability of the Company's third party contract manufacturers to provide
the Company with adequate supplies of drug substance and drug products for
completion of any of the Company's clinical studies, other risks relating to the
lack of adequate supplies of drug substance and drug product for completion of
any of the Company's clinical studies, and risks relating to the development of
competing therapies and/or technologies by other companies. Companies in the
pharmaceutical and biotechnology industries have suffered significant setbacks
in advanced clinical trials, even after obtaining promising earlier trial
results. Data obtained from tests are susceptible to varying interpretations,
which may delay, limit or prevent regulatory approval. Those associated risks
and others are further described in the Company's filings with the Securities
and Exchange Commission including the most recent reports on Forms 10-K, 10-Q
and 8-K, and any amendments thereto.
COMPANY CONTACTS:
John G. Cooper, EVP and CFO
Kori Beer, IR & Communications
215-340-4699
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