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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. _)*
INTERPHARM HOLDINGS, INC.
(Name of Issuer)
COMMON STOCK, PAR VALUE $0.01 PER SHARE
(Title of Class of Securities)
460588106
(CUSIP Number)
SEPTEMBER 11, 2006
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[_] Rule 13d-1(b)
[X] Rule 13d-1(c)
[_] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the reminder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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CUSIP NO. 460588106 Schedule 13G Page 2 of 15
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1. Name of Reporting Person: Aisling Capital II, LP
S.S. or I.R.S. Identifica-
tion No. of Above Person
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2. Check the Appropriate Box (a) [_]
if a Member of a Group (b) [X]
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3. SEC Use Only
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4. Citizenship or Place of Organization Delaware
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Number of 5. Sole Voting Power: 7,330,617*
Shares ------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By ------------------------------------------------
Each 7. Sole Dispositive Power: 7,330,617*
Reporting ------------------------------------------------
Person 8. Shared Dispositive Power: -0-
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
7,330,617*
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10. Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares
[_]
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11. Percent of Class Represented by Amount in Row (9) 9.99%*
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12. Type of Reporting Person PN
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* This amount is an approximation, which includes 2,281,914 shares of
common stock issuable upon the exercise of warrants and approximately 5,048,703
shares of common stock issuable upon the initial conversion of 10,000 shares of
Series C-1 Convertible Preferred Stock (the "Preferred Shares"). See Item 4(a).
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CUSIP NO. 460588106 Schedule 13G Page 3 of 15
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1. Name of Reporting Person: Aisling Capital Partners, LP
S.S. or I.R.S. Identifica-
tion No. of Above Person
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2. Check the Appropriate Box (a) [_]
if a Member of a Group (b) [X]
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3. SEC Use Only
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4. Citizenship or Place of Organization Delaware
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Number of 5. Sole Voting Power: 7,330,617*
Shares ------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By ------------------------------------------------
Each 7. Sole Dispositive Power: 7,330,617*
Reporting ------------------------------------------------
Person 8. Shared Dispositive Power: -0-
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
7,330,617*
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10. Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9) 9.99%
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12. Type of Reporting Person PN
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--------------------
* This amount is an approximation, which includes 2,281,914 shares of
common stock issuable upon the exercise of warrants and approximately 5,048,703
shares of common stock issuable upon the initial conversion of the Preferred
Shares. See Item 4(a).
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CUSIP NO. 460588106 Schedule 13G Page 4 of 15
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1. Name of Reporting Person: Aisling Capital Partners LLC
S.S. or I.R.S. Identifica-
tion No. of Above Person
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2. Check the Appropriate Box (a) [_]
if a Member of a Group (b) [X]
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3. SEC Use Only
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4. Citizenship or Place of Organization Delaware
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Number of 5. Sole Voting Power: 7,330,617*
Shares ------------------------------------------------
Beneficially 6. Shared Voting Power: -0-
Owned By ------------------------------------------------
Each 7. Sole Dispositive Power: 7,330,617*
Reporting ------------------------------------------------
Person 8. Shared Dispositive Power: -0-
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
7,330,617*
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10. Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9) 9.99%
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12. Type of Reporting Person OO
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* This amount is an approximation, which includes 2,281,914 shares of
common stock issuable upon the exercise of warrants and approximately 5,048,703
shares of common stock issuable upon the initial conversion of the Preferred
Shares. See Item 4(a).
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CUSIP NO. 460588106 Schedule 13G Page 5 of 15
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1. Name of Reporting Person: Steve Elms
S.S. or I.R.S. Identifica-
tion No. of Above Person
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2. Check the Appropriate Box (a) [_]
if a Member of a Group (b) [X]
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3. SEC Use Only
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4. Citizenship or Place of Organization United States
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Number of 5. Sole Voting Power: -0-
Shares ------------------------------------------------
Beneficially 6. Shared Voting Power: 7,330,617*
Owned By ------------------------------------------------
Each 7. Sole Dispositive Power: -0-
Reporting ------------------------------------------------
Person 8. Shared Dispositive Power: 7,330,617*
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
7,330,617*
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10. Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares
[_]
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11. Percent of Class Represented by Amount in Row (9) 9.99%
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12. Type of Reporting Person IN
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* This amount is an approximation, which includes 2,281,914 shares of
common stock issuable upon the exercise of warrants and approximately 5,048,703
shares of common stock issuable upon the initial conversion of the Preferred
Shares. See Item 4(a).
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CUSIP NO. 460588106 Schedule 13G Page 6 of 15
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1. Name of Reporting Person: Dennis Purcell
S.S. or I.R.S. Identifica-
tion No. of Above Person
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2. Check the Appropriate Box (a) [_]
if a Member of a Group (b) [X]
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3. SEC Use Only
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4. Citizenship or Place of Organization United States
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Number of 5. Sole Voting Power: -0-
Shares ------------------------------------------------
Beneficially 6. Shared Voting Power: 7,330,617*
Owned By ------------------------------------------------
Each 7. Sole Dispositive Power: -0-
Reporting ------------------------------------------------
Person 8. Shared Dispositive Power: 7,330,617*
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
7,330,617*
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10. Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares
[_]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9) 9.99%
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12. Type of Reporting Person IN
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--------------------
* This amount is an approximation, which includes 2,281,914 shares of
common stock issuable upon the exercise of warrants and approximately 5,048,703
shares of common stock issuable upon the initial conversion of the Preferred
Shares. See Item 4(a).
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CUSIP NO. 460588106 Schedule 13G Page 7 of 15
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1. Name of Reporting Person: Andrew Schiff
S.S. or I.R.S. Identifica-
tion No. of Above Person
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2. Check the Appropriate Box (a) [_]
if a Member of a Group (b) [X]
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3. SEC Use Only
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4. Citizenship or Place of Organization United States
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Number of 5. Sole Voting Power: -0-
Shares ------------------------------------------------
Beneficially 6. Shared Voting Power: 7,330,617*
Owned By ------------------------------------------------
Each 7. Sole Dispositive Power: -0-
Reporting ------------------------------------------------
Person 8. Shared Dispositive Power: 7,330,617*
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
7,330,617*
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10. Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares
[_]
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11. Percent of Class Represented by Amount in Row (9) 9.99%
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12. Type of Reporting Person IN
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* This amount is an approximation, which includes 2,281,914 shares of
common stock issuable upon the exercise of warrants and approximately 5,048,703
shares of common stock issuable upon the initial conversion of the Preferred
Shares. See Item 4(a).
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CUSIP NO. 460588106 Schedule 13G Page 8 of 15
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Item 1. (a) NAME OF ISSUER
Interpharm Holdings, Inc. (the "Company").
(b) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES
75 Adams Avenue
Hauppage, NY 11788
Item 2. (a) NAMES OF PERSONS FILING
This Statement is being filed on behalf of each of the
following persons (collectively, the "Reporting Persons")
(i) Aisling Capital II, LP, a Delaware limited partnership
("Aisling");
(ii) Aisling Capital Partners, LP, a Delaware limited
partnership ("Aisling Partners" and general partner of
Aisling);
(iii) Aisling Capital Partners LLC, a Delaware limited
liability company ("Aisling Partners GP" and general
partner of Aisling Partners);
(iv) Mr. Steve Elms ("Mr. Elms" and a managing member of
Aisling Partners GP);
(v) Mr. Dennis Purcell ("Mr. Purcell" and a managing member
of Aisling Partners GP); and
(vi) Mr. Andrew Schiff ("Mr. Schiff" and a managing member
of Aisling Partners GP);
(b) ADDRESS OF PRINCIPAL BUSINESS OFFICE
The address of the principal business offices of each of the
Reporting Persons is 888 Seventh Avenue, 30th Floor, New
York, NY 10106.
(c) CITIZENSHIP
(i) Aisling - a Delaware limited partnership
(ii) Aisling Partners - a Delaware limited partnership
(iii) Aisling Partners GP - a Delaware limited liability
company
(iv) Mr. Elms - United States
(v) Mr. Purcell - United States
(vi) Mr. Schiff - United States
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CUSIP NO. 460588106 Schedule 13G Page 9 of 15
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(d) TITLE OF CLASS OF SECURITIES
Common Stock, par value $0.01 per share (the "Common Stock"
or "Shares")
(e) CUSIP NUMBER
460588106
Item 3. This statement is not being filed pursuant to either Rule 13d-1(b) or
13d-2(b) or (c).
Item 4. OWNERSHIP.
(a) AMOUNT BENEFICIALLY OWNED:
Each of the Reporting Persons may be deemed to beneficially
own an aggregate of approximately 7,330,617 Shares, which
includes 2,281,914 Shares issuable upon the exercise of
warrants and approximately 5,048,703 Shares issuable upon the
initial conversion of the Preferred Shares. The certificate
of designations of the Preferred Shares provides that the
holder of the Preferred Shares does not have the right to
convert the Preferred Shares into Shares to the extent that
such conversion would result in beneficial ownership by the
holder of more than 9.99% of the number of Shares outstanding
immediately after giving effect to such conversion. As a
result of this provision, the Reporting Persons are reporting
herein their beneficial ownership of the Shares representing
9.99% of the current outstanding Shares. If there was no such
provision, as of the date hereof, the Reporting Persons would
be able to own an additional 1,449,867 Shares issuable upon
the initial conversion of the Preferred Shares held for the
account of Aisling.
(b) PERCENTAGE OWNED:
Based on calculations made in accordance with Rule 13d-3(d),
and there being 64,599,066 Shares outstanding as of September
11, 2006 each of the Reporting Persons may be deemed to
beneficially own approximately 9.99% of the outstanding
Common Stock.
(c) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS:
(i) Each of Aisling, Aisling Partners and Aisling Partners GP
may be deemed to have sole power to direct the voting and
disposition of the 7,330,617 Shares beneficially owned by
Aisling.
(ii) By virtue of the relationships between and among the
Reporting Persons as described in Item 2, each of the
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CUSIP NO. 460588106 Schedule 13G Page 10 of 15
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Reporting Persons, other than Aisling, Aisling Partners and
Aisling Partners GP, may be deemed to share the power to
direct the voting and disposition of the 7,330,617 Shares
beneficially owned by Aisling.
Item 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS
Not applicable.
Item 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON
The partners of Aisling have the right to participate in the receipt
of dividends from, or proceeds from the sale of, the securities held
for the account of Aisling in accordance with their ownership
interests in Aisling.
Item 7. IDENTIFICATION AND CLASSIFICATION OF SUBSIDIARY WHICH ACQUIRED THE
SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY
Not applicable.
Item 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP
Not applicable.
Item 9. NOTICE OF DISSOLUTION OF GROUP
Not applicable.
Item 10. CERTIFICATION
(b) The following certification shall be included if the statement is
filed pursuant to ss.240.13d-1(c):
By signing below we certify that, to the best of our knowledge and
belief, the securities referred to above were not acquired and are
not held for the purpose of or with the effect of changing or
influencing the control of the issuer of the securities and were not
acquired and are not held in connection with or as a participant in
any transaction having that purpose or effect.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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CUSIP NO. 460588106 Schedule 13G Page 11 of 15
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SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
Dated as of September 21, 2006
AISLING CAPITAL II, LP
By: Aisling Capital Partners, LP
General Partner
By: Aisling Capital Partners LLC
Managing Member
By: /s/ Adele Kittredge Murray
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Name: Adele Kittredge Murray
Title: Secretary
AISLING CAPITAL PARTNERS, LP
By: Aisling Capital Partners LLC
Managing Member
By: /s/ Adele Kittredge Murray
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Name: Adele Kittredge Murray
Title: Secretary
AISLING CAPITAL PARTNERS LLC
By: /s/ Adele Kittredge Murray
-------------------------------
Name: Adele Kittredge Murray
Title: Secretary
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CUSIP NO. 460588106 Schedule 13G Page 12 of 15
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/s/ Steve Elms
----------------------
Steve Elms
/s/ Dennis Purcell
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Dennis Purcell
/s/ Andrew Schiff
----------------------
Andrew Schiff
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CUSIP NO. 460588106 Schedule 13G Page 13 of 15
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EXHIBIT INDEX
Exhibit 1. Joint Filing Agreement as required by Rule 13d-1(k)(1) under
the Securities Exchange Act of 1934, as amended.