SUNEVA MEDICAL RAISES $35.4 MILLION IN CAPITAL FOR ONGOING PRODUCT COMMERCIALIZATION EFFORTS AND EXPANSION OF BUSINESS DEVELOPMENT ACTIVITIES

  • Financing includes $15 million in a Series C equity investment from Almirall, Inc., an affiliate of Almirall, S.A and a $20.4 million growth-capital term loan from an account managed by HealthCare Royalty Partners
  • Capital to support continuing commercialization of company’s aesthetic product portfolio
  • Company will expand its business development and licensing activities to enhance its technology pipeline

San Diego, CA (July 29, 2015)—Suneva Medical, Inc., an innovative aesthetics leader that markets Bellafill®, the only dermal filler on the market that is FDA approved for the correction of facial acne scars, announced the closing of a $15 million equity investment by Almirall, Inc., an affiliate of Almirall, S.A, a global pharmaceutical company primarily focused within the therapeutic area of medical dermatology. In addition, the company also recently completed a $20.4 million growth-capital term loan with an account managed by HealthCare Royalty Partners, the proceeds of which were used in part to pay off an existing $10 million growth-capital term loan. The company also increased the size of an existing working capital facility with Comerica Bank. This financing provides a strong foundation for the company’s continued growth and the ongoing launch of Bellafill®, the only FDA approved dermal filler proven to be safe and effective for the correction of moderate to severe, atrophic, distensible facial acne scars on the cheek in patients over the age of 21 years.

“We are enthusiastic about the potential this strategic relationship with Almirall creates as we continue to grow. We look forward to the opportunities with Almirall to energize and expand our business,” said Nicholas L. Teti, Jr., Chairman and Chief Executive Officer at Suneva Medical. “The Almirall equity investment will accelerate the growth for our current product portfolio and allow us the flexibility to continue to build one of the industry’s leading, fully integrated aesthetics companies.”

Eduardo Sanchiz, Almirall’s Chief Executive Officer, also commented on the investment: “We are very pleased to perform this strategic investment in Suneva Medical. Almirall is looking for attractive business development opportunities in the dermatology field and this represents our first investment in the aesthetics area. We have been attracted by the quality of Suneva´s portfolio and its management team. This partnership will also allow us to further build our understanding of the performance of the aesthetics dermatology market in the U.S.”

In conjunction with the investment, Almirall will receive one seat on Suneva Medical’s board of directors. In addition to Almirall, other major equity investors include HealthCare Royalty Partners and Polaris Partners.

About Almirall, S.A
Almirall is a global company based in Barcelona dedicated to providing valuable medicines through its R&D, agreements and alliances. Our work covers the whole of the drug value chain. A consolidated growth allows us to devote our talent and efforts towards specialty areas and particularly to further grow as a leading Dermatology player. Our size enables us to be agile and flexible so that we can accomplish the purpose of taking our innovative products wherever they are needed. Founded in 1943, Almirall is listed on the Spanish Stock Exchange (ticker: ALM) and it has become a source of value creation for society due to its vision and the commitment of its long-standing major shareholders. In 2014, its revenues totaled 1,407 million euros and, with more than 2,100 employees, it has gradually built up a trusted presence across Europe, as well as in the US and Mexico. For more information please visit www.almirall.com.

About HealthCare Royalty Partners
HealthCare Royalty Partners (HCRP) is a global healthcare investment firm focused on investing primarily in commercial stage healthcare product assets. HCRP is based in Stamford, Connecticut and manages over $3 billion in capital. Over the past decade, HCRP’s co-founders have completed more than 60 healthcare financings totaling more than $2.5 billion of capital. For more information, visit www.healthcareroyalty.com.

About Comerica Bank
Comerica Incorporated (NYSE: CMA) is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico. To find Comerica on Facebook, please visit www.facebook.com/ComericaCares. Follow Comerica on Twitter at @ComericaCares and follow Comerica Chief Economist Robert Dye on Twitter at @Comerica_Econ.

About Suneva Medical, Inc.
Suneva Medical, Inc. is a privately-held aesthetics company focused on developing, manufacturing and commercializing novel, differentiated products for the general dermatology and aesthetic markets. The innovative aesthetics leader markets Bellafill®, the only dermal filler on the market that is approved by the U.S. Food and Drug Administration for the correction of nasolabial folds and moderate to severe, atrophic, distensible facial acne scars on the cheek in patients over the age of 21 years. In markets outside the U.S., Bellafill® is only approved for the correction of nasolabial folds. The company markets Bellafill® in the U.S. and Canada; ArteFill® in South Korea and Singapore; Regenica® skin care in the U.S. and Canada; and ReFissa® tretinoin cream in the U.S. ArteFill® was rebranded to Bellafill® in the U.S. to reflect the transformational outcomes this unique product can provide to patients seeking correction of their acne scars and nasolabial folds. For more information, visit www.sunevamedical.com/old.

Important Safety Information

Bellafill®
Bellafill® is indicated for the correction of nasolabial folds and moderate to severe, atrophic, distensible facial acne scars on the cheek in patients over the age of 21 years. Patients who have had a positive reaction to the Bellafill® Skin Test, have a history of severe allergies, have known bovine collagen allergies, are allergic to lidocaine, have bleeding disorders or are prone to thick scar formation and/or excessive scarring should not receive Bellafill®. The safety of Bellafill® for use during pregnancy, breastfeeding, or in patients under 21 has not been established. You may experience temporary swelling, redness, pain, bruising, lumps/bumps, itching, and discoloration at the treatment site. These side effects are usually transient and typically resolve within 1–7 days. You may experience lumps/bumps/papules that may occur more than one month after injection and that may persist. Less common side effects include rash and itching more than 48 hours after treatment, persistent swelling or redness, lumps/bumps, acne, and increased sensitivity at treatment sites. Infrequently, granulomas may occur and may be treated by your licensed physician provider. Be sure to call your licensed provider immediately if you notice any unusual skin reactions around the treatment area. Based on the 5-year Post-Approval Study on nasolabial folds with 1,008 patients, long-term safety of Bellafill® for up to 5 years has been established.

PUREGRAFT
This product is certified as a medical device in the European Union under the Medical Device Directive 93/42/EEC by SGS CE0120, exclusively for the indication of autologous fat transfer. Other non-medical uses ascribed to this device such as aesthetic body contouring are not within the scope of CE certification, and users should be aware product performance and/or safety has not been evaluated by SGS for those purposes.

Suneva Medical HD PRP
REGULATORY STATUS: FDA-cleared 510(k) Class II medical device. Healeon HD PRP is designed to be used for the safe and rapid preparation of autologous platelet-rich-plasma (PRP) from a small sample of peripheral blood at the patient point of care. The PRP is mixed with autograft and/orallograft bone prior to application to a bony defect for improving handling characteristics. 510(k) number: BK170136

Silhouette Instalift
Silhouette lnstaLift® is indicated for use in mid-face suspension surgery to temporarily fixate the cheek sub-dermis in an elevated position.

IMPORTANT SAFETY CONSIDERATIONS
The Silhouette InstaLift device should not be used in patients with any known allergy or foreign body sensitivities to plastic/ biomaterial or in situations where internal fixation is otherwise contraindicated, (e.g. infection.) The device should also not be used in patients appearing to have very thin soft tissue of the face in which the implant may be visible or palpable.

Like all procedures of this type there is a possibility of adverse events, although not everybody experiences them. These adverse events include but are not limited to infection, minimal acute inflammatory tissue reaction, pain (which may be temporary or persistent in nature), swelling and edema, transient hematoma or bruising and transient rippling or dimple formation. For further safety or product information, please consult your physician.

For more safety information, please consult with your physician and the patient labeling that can be found by visiting our website www.bellafill.com.
Toll-free call (U.S. & Canada): 844-Bellafill (844-235-5234).
Local calls: 858-550-9999. International calls: ++ 858-550-9999.