Date: 2015-06-02
Type of information: Financing round
Company: Intarcia Therapeutics (USA - CA)
Investors:
Amount: $300 million
Funding type: financing round
Planned used: Plans are to use these funds to accelerate the initiation of additional head-to-head comparative and switch studies of ITCA 650 vs. leading oral and injectable type 2 diabetes therapies. In addition, proceeds from the financing will fund the expected infrastructure and talent required to launch ITCA 650 in the United States, and to advance the Company’s recently in-licensed pipeline assets. Intarcia is developing ITCA 650 for the treatment of type 2 diabetes. If approved, ITCA 650 would be the first injection-free glucagon-like peptide-1 (GLP-1) receptor agonist therapy capable of delivering up to a full year of treatment from a single mini-pump placement. Data from two positive phase 3 trials of ITCA 650, FREEDOM-1 and FREEDOM-1 HBL (high baseline), are being presented at the upcoming 75th Scientific Sessions of the American Diabetes Association that begins on June 5th in Boston.
Others: * On June 2, 2015, Intarcia Therapeutics announced the closing of an additional $75 million from its recently announced synthetic royalty / equity convert financing, bringing the total amount raised to $300 million. Investors have purchased Convertible Limited Recourse Notes from Intarcia and are entitled to receive quarterly payments equal to 2.0% of any future global net sales of ITCA 650 until the notes mature or are fully paid. Investors also have the option, commencing upon U.S. regulatory approval of ITCA 650 and ending on the later of the second anniversary of the approval or December 31, 2019, to convert their synthetic royalty interests into Intarcia common stock at a conversion price corresponding to an equity valuation of $5.5 billion.Morgan Stanley & Co. LLC acted as sole structuring agent to Intarcia on this novel transaction. PhaRMA? is a service mark of Morgan Stanley. * On April 27, 2015, Intarcia Therapeutics announced the closing of a $225 million synthetic royalty financing with an equity conversion option at a $5.5 billion Company valuation. Plans are to use these funds to accelerate the initiation of additional head-to-head comparative and switch studies of ITCA 650 vs. leading oral and injectable type 2 diabetes therapies. In addition, proceeds from the financing will fund the expected infrastructure and talent required to launch ITCA 650 in the United States, and to advance the Company’s recently in-licensed pipeline assets.
Under the terms of the deal, investors have purchased Convertible Limited Recourse Notes from Intarcia and are entitled to receive quarterly payments equal to 1.5% of future global net sales of ITCA 650 until the notes mature or are fully paid. Investors have the option, commencing upon U.S. regulatory approval of ITCA 650 and ending on the later of the second anniversary of the approval or December 31, 2019, to convert their synthetic royalty interests into Intarcia common stock at a conversion price corresponding to an equity valuation of $5.5 billion.
Therapeutic area: Metabolic diseases
