Pharming gets cash injection
02.08.2012 - Dutch Pharming Group NV has baged an equity working capital facility of up to €10m to push Ruconest (conestat alfa) to the US market.
The Leiden-based company secured a financing of up to €10m led by Kingsbrook Opportunities Master Fund LP. Ruconest, a recombinant C1 inhibitor to treat angioedema attacks in patients with the congenital disorder HEA. The drug is produced through the company's proprietary technology in milk of transgenic rabbits. The working capital facility should enable Pharming's cash runway to reach the anticipated read out of Study 1310 for Ruconest in the US and the associated US$10m milestone payment and a further US$5m upon acceptance of the BLA by the FDA from US partner, Santarus, Inc.
Pharming will have the option to draw from the working capital facility in tranches in exchange for ordinary shares in the capital. Pharming will retain control of the timing and amount of any funds draw down. Pharming must give notice to the Investors. The investors have the option to purchase up to 600% of the Draw Down Amount.
On signing, Kingsbrook and other investors will receive warrants to purchase up to an aggregate of 16,500,000 ordinary shares in the capital of Pharming. When draw downs have exceeded a total of €2,5m and for every subsequent €2,5m drawn, the Investors will receive additional warrants to purchase up to an additional 16,5 million ordinary shares. The warrants have an exercise period of five years and are exercisable at a strike price equal to 110% of the average of the volume weighted average price of the ordinary shares on the market for the 10 trading days prior to the signing of this agreement. Sijmen de Vries, CEO, said "Pharming is very pleased to have secured this facility against a backdrop of extremely difficult conditions in the capital markets.“ Currently Ruconest is in Phase III testing under a Special Protocol Assessment (SPA) that is intended to support the submission of a Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA). The study with the orphan drug, which is expressed in transgenic rabbits, is expected to be completed by autum this year.