LEIDEN, the Netherlands,
July 20, 2015 /PRNewswire/ --
- Non-dilutive
growth capital provides working capital and
supports pipeline development projects
-
Biotech company Pharming Group NV ("Pharming" or "the Company")
(Euronext: PHARM) today announces that it has entered into a
straight debt financing of €15.6 million (€15.0 million net
proceeds after subtraction of transaction fees and costs) with
Oxford Finance LLC and Silicon Valley Bank ("The Lenders").
Under the terms and conditions of the agreement, the Lenders
provide US$17 million secured senior
debt funding against 48 months promissory notes with a 7.02% fixed
interest per annum. The initial 12 months of the notes are interest
only, followed by monthly re-payment of the notes in a 36 months
straight amortization scheme. As further consideration for the
facility, the Lenders will receive a 3.95% warrant coverage
(2,124,328 warrants) with a strike price of €0.29, representing the
average closing price of Pharming shares over the last ten days
prior to the closing date and a final payment on maturation
(1 July 2019) of 9% of the principal
sum.
Sijmen de Vries, Pharming's CEO, said: "The ability to attract
this virtually non-dilutive growth capital financing on such
favorable terms, from Oxford Finance and Silicon Valley Bank,
represents an important validation of our business model, growth
plans and financial stability. The funding enables us to accelerate
the growth of the business by simultaneously financing the working
capital required to support manufacturing for the increasing
RUCONEST® sales and our investments in additional indications for
RUCONEST, as well as the development of new products utilizing the
strengths of our platform."
"Oxford is pleased to have the opportunity to provide financing
to foster Pharming's continued growth and innovative product
development," said Christopher A.
Herr, senior managing director for Oxford Finance. "The
company has successfully marketed RUCONEST in
numerous countries, and its highly respected executive
team is committed to finding additional solutions for the treatment
of critical medical needs."
Nooman Haque, Director of UK Life
Sciences & Healthcare for Silicon Valley Bank, added: "We are
very pleased to be working with Pharming to help them bring
innovative medical products to market. We look forward to our
partnership with Pharming's management team as they develop new
products and pursue their business' growth strategy."
About Pharming Group NV
Pharming Group NV is developing innovative products for the
treatment of unmet medical needs. RUCONEST® (conestat alfa) is a
recombinant human C1 esterase inhibitor approved for the treatment
of angioedema attacks in patients with HAE in the USA, Israel
all 28 EU countries plus Norway,
Iceland, and Liechtenstein.
RUCONEST is commercialised by Pharming in Austria, Germany and The
Netherlands. RUCONEST is distributed by Swedish Orphan
Biovitrum AB (publ)
(SS: SOBI) in the other EU countries, and in
Azerbaijan, Belarus, Georgia, Iceland, Kazakhstan, Liechtenstein, Norway, Russia, Serbia, and Ukraine.
RUCONEST is partnered with Salix Pharmaceuticals, Ltd. ("Salix")
in North America. Salix is part of
Valeant Pharmaceuticals International, Inc. (NYSE: VRX/TSX:
VRX)
RUCONEST is also being investigated in a randomised Phase II
clinical trial for prophylaxis of HAE, in a Phase II clinical trial
for the treatment of HAE in young children (2-13 years of age) and
evaluated for various additional follow-on indications.
Pharming has a unique GMP compliant, validated platform for the
production of recombinant human proteins that has proven capable of
producing industrial volumes of high quality recombinant human
protein in a more economical way compared to current cell-based
technologies. Leads for Enzyme Replacement Therapy (ERT) in Pompe,
Fabry's and Gaucher's diseases are under early evaluation. The
platform is partnered with Shanghai Institute of Pharmaceutical
Industry (SIPI), a Sinopharm Company, for joint global development
of new products. Pre-clinical development and manufacturing will
take place at SIPI and are funded by SIPI. Pharming and SIPI
initially plan to utilise this platform for the development of
recombinant human Factor VIII for the treatment of Haemophilia A.
For more information, please visit http://www.pharming.com
About Oxford Finance LLC
Oxford Finance is a specialty finance firm providing senior
secured loans to public and private life sciences and healthcare
services companies worldwide. For over 20 years, Oxford has
delivered flexible financing solutions to its clients, enabling
these companies to maximize their equity by leveraging their
assets. In recent years, Oxford has originated over $2 billion in loans, with lines of credit ranging
from $500 thousand to $75 million.
Oxford is headquartered in Alexandria,
Virginia, with additional offices in California, Massachusetts and North Carolina. For more information visit
http://www.oxfordfinance.com.
About Silicon Valley Bank
For more than 30 years, Silicon Valley Bank (SVB) has
helped innovative businesses and their investors move bold ideas
forward, fast. SVB provides a range of targeted financial services
and expertise through its office in the UK. With commercial and
international banking services, SVB helps address the unique needs
of innovators. Forbes named SVB one of America's best banks (2015)
and one of America's best-managed companies (2014). In 2014, SVB
was recognised as Service Provider of the Year for the third year
in a row at the Investor Allstar Awards in London. SVB's life science and healthcare
practice provides a range of financial services to innovative
companies that are improving health through technology. Learn more
at http://www.svb.com/uk.
Pharming Group
Sijmen de Vries, Chief Executive Officer
Tel: +31-71-5247400
FTI Consulting (Pharming media relations)
Julia Phillips/ Victoria Foster Mitchell
Tel: +44-203-727-1136