• SEC Filings

On September 22, 2017, Dermira, Inc. (the “Company”) entered into a Sublease Agreement (the “Sublease”) with McDermott Will & Emery LLP, an Illinois limited liability partnership (“Sublessor”), to which the Company will sublease from Sublessor an additional approximately 23,798 rentable square feet of space in the building located at 275 Middlefield Road, Menlo Park, California (the “Sublease Premises”).

Subject to the consent of the master landlord, BVK 275 Middlefield LLC (the “Master Landlord”), the Sublease term will commence (the “Commencement Date”) on the earlier to occur of (i) January 1, 2018, and (ii) the date on which the Company completes its tenant improvements to the Sublease Premises (the “Alterations”), and end on April 30, 2024 (the “Expiration Date”), unless sooner terminated to the terms of the Sublease.The Company will pay all costs and expenses associated with the Alterations.

The Company will pay Sublessor an initial monthly base rent of approximately $139,218.30, or an annual base rent of approximately $1.67 million, which will increase annually by approximately three percent (3%), plus additional monthly fees to cover the Company’s share of certain facility expenses related to the Sublease Premises, including utilities, property taxes, insurance and maintenance. The Company is entitled to an abatement of the monthly base rent for the period commencing on the Commencement Date and ending 45 days after the Commencement Date.Accordingly, the Company’s obligation to pay the monthly base rent commences on the date that is 46 days after the Commencement Date.

In connection with execution of the Sublease, the Company delivered to Sublessor a cash security deposit in the amount of Three Hundred Thousand Dollars ($300,000), which will be replaced by an irrevocable commercial letter of credit in the same amount within thirty (30) days thereafter, to be held as security for the faithful performance and observation by the Company of the terms, covenants and conditions of this Sublease. The cash security deposit will be returned to the Company upon receipt of the letter of credit.

The Sublease is subject to and subordinate to Sublessor’s lease of the Sublease Premises to its lease with Master Landlord dated as of November 6, 2008, as amended (the “Master Lease”).The Sublease contains customary default provisions incorporated by reference from the Master Lease allowing Sublessor to terminate the Sublease if the Company fails to cure a breach of any of its obligations within specified time periods.The Company may not assign or further sublease all or any part of the Sublease Premises without the prior written consent of Sublessor and Master Landlord.

The foregoing summary of the Sublease is not complete and is qualified in its entirety by reference to the Sublease, a copy of which will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ending September 30, 2017.

The information under Item 1.01 above is incorporated by reference into this Item 2.03.

About Dermira, Inc. (NASDAQ:DERM)

Dermira, Inc. is a biopharmaceutical company. The Company is focused on identifying, developing and commercializing differentiated therapies for dermatologic diseases. The Company’s portfolio includes three late-stage product candidates that target unmet needs and market opportunities, such as Cimzia (certolizumab pegol), DRM04 and DRM01. Cimzia is an injectable biologic tumor necrosis factor-alpha inhibitor, or TNF inhibitor, that is approved and marketed for the treatment of numerous inflammatory diseases spanning multiple medical specialties, including rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis and Crohn’s disease. DRM04 is a topical, small-molecule anticholinergic product for the treatment of hyperhidrosis. DRM01 is a topical, small-molecule sebum inhibitor for the treatment of acne.