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Fundraisings and IPOs

Date: 2012-08-01

Type of information: Fundraising

Company: Pharming (The Netherlands)

Investors: Kingsbrook Opportunities Master Fund LP - other institutional investors

Amount: up to €10 Million

Funding type: equity working capital facility

Planned used:

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$10 million milestone payment (upon successful read out of the study) and a further US$5 million upon acceptance of the BLA by the FDA from US partner, Santarus, Inc. Santarus and Pharming have recently reached full recruitment of study 1310.

Others:

Pharming Group  has secured an equity working capital facility of up to €10 million for a two year term, with Kingsbrook Opportunities Master Fund LP as lead investor and other institutional investors.
Pharming will have the option to draw from the working capital facility in tranches in exchange for ordina ry shares in the capital of the Company. Pharming will retain control of the timing and amount of any funds draw down. Pharming must give notice to the Investors (a “Draw Down Notice”) prior to drawing down funds. Each Draw Down Notice will state the number of ordinary shares Pharming wishes to sell to the Investors (“the Draw Down Amount”). The Investors have the option to purchase up to 600% of the Draw Down Amount.
On signing, the Investors will receive warrants to purchase up to an aggregate of 16,500,000 ordinary shares in the capital of the Company. When draw downs have exceeded a total of €2,500,000 and for every subsequent €2,500,000 drawn, the Investors will receive additional warrants to purchase up to an additional 16,500,000 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 o n the market for the 10 trading days prior to the signing of this agreement.
Pharming is conducting a Phase III clinical study with Ruconest ® under a Special Protocol Assessment (SPA) that is intended to support the submission of a Biologics License Application (BLA) to the FDA (See). The study is expected to be completed by the end of the third quarter of 2012.
* On August 2, 2012. Pharming has announced a strategic restructuring plan of its Dutch operations designed to accelerate its path to sustainability and future profitability. The proposed plan, which necessitates a request for “collective redundancies”, was filed with the Dutch authorities (UWV Werkbedrijf, in accordance with the “Wet Melding Collectief Ontslag”). The process entails a formal procedure, required when there is a need for downsizing of an organisation by 20 staff or more. The plan continues the restructuring initiated in June by the closure and subsequent sale of Pharming’s US facility. Post the completion of this restructuring, the organisation will have maintained full capabilities to execute technology transfers of platform technology and product processes as well as retaining all product development associated know-how. Furthermore, Pharming will continue to participate in existing collaborative product development and to pursue potential partnerships in the future. The Company will thus maintain sufficient personnel to achieve these strategic objectives by aligning the staffing resources and potential partnering requirements of the organisation with its strategic needs post the anticipated finish of Study 1310 (our US pivotal trial) and submission of the Ruconest BLA to the FDA .
As a result of the restructuring, the Company aims to reduce costs by approximately € 3.5-5 million annually over the coming 12-18 months. Pharming's Works Council has yet to advise on the restructuring plan, according to the Works Councils Act art 25. Following the decision of the authorities and the advice of the Works Council, the plan will be implemented.

Therapeutic area: Rare diseases - Genetic diseases

Is general: Yes