DGAP-News: ERYTECH PHARMA SA / Key word(s): Capital Increase
ERYTECH successfully raises EUR30 million for expanding its
therapeutic indications in oncology and accelerating its clinical
developments
23.10.2014 / 12:30
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ERYTECH successfully raises EUR30 million for expanding its therapeutic
indications in oncology and accelerating its clinical developments
- Reserved capital increased with EUR30 million, of which 68% subscribed
by US investors specialized in life sciences
- Following its recent success in acute leukemia, ERYTECH intends to
speed up its development in the USA and in solid Tumors
Lyon, France, October 23, 2014 - ERYTECH (Euronext Paris: FR0011471135 -
ERYP), the French biopharmaceutical company that develops innovative 'tumor
starvation' treatments for acute leukemia and other oncology indications
with unmet medical need, announces today the successful completion of a
capital increase for a total amount of EUR30 million.
Gil Beyen, Chairman & CEO of ERYTECH, comments: "Following the good Phase
III results of our clinical study on GRASPA(R) in acute lymphoblastic
leukemia, the strategy of ERYTECH Pharma is to further increase the
potential of this product toward other indications such as lymphomas and
solid tumors and speed up its development in the US. This successful
capital increase operation has allowed us to establish the financial basis
for this growth strategy while further expanding our shareholder base in
the US, the reference market for our sector."
Modalities of the operation
A total of 1,224,489 new shares will be issued within a capital increase
with suppression of preferential subscription rights, reserved for
investors accustomed to investing in the health sector. The new shares
represent around 17.8% of the number of shares in circulation (after
capital increase).
The issue price has been set at EUR24.50 per share, in accordance with
resolution 10 of the Shareholders' Meeting of June 17, 2014. This price
represents a discount of 3.5% compared to the weighted average stock price
over the past five trading sessions, which was EUR25.39.
In total, 80% of the operation was executed internationally, with 68% in
the U.S.
Use of proceeds
The proceeds from the issue are to be used by the company as additional
means for financing of:
- two new Phase II or Phase III clinical studies on ERY-ASP(TM)/GRASPA(R)
in oncology or hemato-oncology;
- the acceleration of the development of the clinical Phase I/II study
with ERY-ASP(TM)/GRASPA(R) and an additional clinical study in the
U.S.;
- the pre-clinical and Phase I clinical development of ERY-MET in a
therapeutic indication in oncology and the pharmaceutical production of
GMP batches of methioninase (in addition to Bpifrance financing);
- the regulatory and clinical costs for registering ERY-ASP(TM)/GRASPA(R)
in Europe;
- the general costs associated with the completion of the above projects.
The cost of the planned clinical studies has been estimated based on the
experience acquired by ERYTECH from conducting various clinical studies
with ERY-ASP(TM)/GRASPA(R) in acute lymphoblastic leukemia, acute myeloid
leukemia and pancreatic cancer, and will be in the order of the studies
that have already been completed.
Furthermore, ERYTECH will use the proceeds of this capital increase to
finance its share, 52%, of the future costs for ERY-MET with the knowledge
that Bpifrance will assume 48% of the project costs as defined in the
contract.
The Company's current cash position and this additional financing will
enable it to see the above-mentioned projects through to their end.
Third quarter revenues and cash position on September 30, 2014
On September 30, 2014, the cash and cash equivalents amounted to 10.0
million euros compared to 12.3 million euros on June 30, 2014.
When including the net proceeds of this financing, the cash position on
October 23, 2014 amounts to approximately 38 million euros.
During the third quarter of 2014, ERYTECH Pharma did not report any income
from activities.
This financial information as of September 30, 2014 has been communicated
in lieu of the quarterly communication initially planned for November 4,
2014.
Listing of the new shares
The new shares have a nominal value of EUR122,449 and will be in the same
category as the company's current shares. They will carry immediate
dividend rights and will give the right, as of their issue, to all
distributions decided by the Company as of this date. Listing on the
Euronext regulated market ("Euronext Paris") will be requested and will be
subject to a listing prospectus and the approval of the French Autorité des
Marchés Financiers (AMF). The new shares will be listed under the same code
as the previous shares (ISIN FR0011471135). The settlement and delivery
should occur on October 27, 2014.
Lock-up agreement - shareholders
Upon this issue, the Company has agreed not to issue new shares for a
period of 90 days after the date of settlement and delivery, subject to the
usual exceptions. For reference, the issue affects the allocation of
capital and voting rights of the Company (as of October 17, 2014) as
follows:
<pre>
Situation before capital Situation after capital
increase on the basis of increase before
the capital structure on settlement/delivery
October 17 2014
Shareholders Number of % of % of Number of % of % of
shares capital voting shares capital voting
Management 603 290 10,66% 16,37% 603 290 8,77% 13,77%
Idinvest 813 400 14,38% 11,01% 813 400 10,64% 9,53%
Auriga Partners 1 018 212 18,00% 25,09% 1 018 212 14,79% 21,39%
Recordati Orphan 431 034 7,62% 6,08% 431 034 6,26% 5,18%
Drugs
Other shareholders 90 584 1,59% 2,17% 90 584 1,32% 1,85%
< 0,5%
Bearer shares 2 701 752 43,47% 39,23% 3 926 241 57,04% 47,21%
TOTAL 5 658 272 100,00% 100,00% 6 882 761 100 % 100%
</pre>
The transaction was lead by Bryan Garnier as Global Coordinator and LifeSci
Capital as placement agent in the U.S.
"This operation confirms the strong appeal of ERYTECH to international
investors, particularly with specialized American health care funds. The
extensions of the therapeutic indications for ERY-ASP(TM)/GRASPA(R), the
acceleration of our developments in the U.S. and the new drug candidate
ERY-MET will contribute to the growth of the strategic value of our
technology and our oncology product portfolio," says Gil Beyen, Chairman &
CEO of ERYTECH Pharma.
Information available to the public
Copies of the Reference Document registered by the AMF on June 4, 2014
under the number R.14.038 are available free of charge at the headquarters
of ERYTECH Pharma, 60 Avenue Rockefeller, Bâtiment Adénine, Lyon, France,
and on the websites of ERYTECH Pharma (www.erytech.com) and the AMF
(www.amf-france.org). ERYTECH Pharma would like to refer investors to
Chapter 4 'Risk Factors' in the Reference Document and to Chapter 6 'Risk
Factors' in the Document de Base.
About ERYTECH and ERYASP(TM)/GRASPA(R): www.erytech.com
Created in Lyon in 2004, ERYTECH is a French biopharmaceutical company
providing new prospects for cancer patients, particularly those with acute
leukemia and selected solid tumors.
By encapsulating the asparaginase enzyme in red blood cells, ERYTECH has
developed ERY-ASP/GRASPA(R), an original and effective treatment that
destroys cancerous cells through "starvation" while significantly reducing
side effects. ERY-ASP/GRASPA(R) is currently completing Phase III clinical
development in Acute Lymphoblastic Leukemia (ALL) in Europe and is in Phase
IIb in Acute Myeloid Leukemia (AML). The product is also in Phase I/II in
ALL in the U.S.
Every year about 50,000 patients are diagnosed with ALL or AML in Europe
and the U.S. Today, about 80% of these patients, mainly relapsing adults
and children, cannot use the current forms of asparaginase due to their
toxicity. ERY-ASP is being developed with the goal of improving the
tolerability profile in order to treat all patients diagnosed with acute
leukemia, even the most fragile ones. The market segment addressed by
ERYTECH represents a potential of 1 billion euros.
The Company is also developing treatments for solid tumors and some orphan
indications outside oncology. It is currently conducting a Phase II study
on pancreatic cancer in Europe and examining other solid tumor indications
for ERY-ASP.
The Company has obtained orphan drug designations for ERY-ASP/GRASPA(R) in
ALL, AML and pancreatic cancer in Europe and the U.S. It has its own
operational manufacturing sites in Lyon, France and Philadelphia in the
U.S.
ERYTECH has concluded two distribution partnership agreements, one in
Europe with Orphan Europe (Recordati Group), one of the main actors in
orphan drugs, and the other in Israel with the TEVA Group.
ERYTECH is listed on the Euronext regulated market in Paris (ISIN code:
FR0011471135, ticker code: ERYP) and is part of the CAC All Shares, CAC
Healthcare, CAC Pharma & Bio, CAC Small, CAC Mid&Small, CAC All Tradable
and Next Biotech indexes. ERYTECH shares are eligible to PEA-PME (French
share savings plan for SMEs).
Contacts
<pre>
ERYTECH NewCap
Gil Beyen Julien Perez & Emmanuel Huynh
Chairman and Chief Executive Officer Investor Relations
Pierre-Olivier Goineau Nicolas Mérigeau
Vice President, Chief Operating Officer Press Contact
Tel.: +33 4 78 74 44 38 Tel.: +33 1 44 71 98 52
investors@erytech.com erytech@newcap.fr
</pre>
Warning
This press release is for information purposes only and does not constitute
and shall not be considered as constituting a public offer by ERYTECH
Pharma, an offer to purchase or as an intention to solicit the interest of
the public for an offering of any kind whatsoever in any country including
France. This shares discussed in this press release may not and shall not
be publicly offered in France except to natural or legal persons investing
in shares in the usual manner in the health sector. This press release does
not constitute a prospectus within the meaning of Directive 2003/71/EC of
the European Parliament and the Council of November 4th, 2003, as amended,
in particular by Directive 2010/73/EC, to the extent such Directive has
been transposed in the relevant member State of the European Economic Area
(the "Prospectus Directive"). With respect to the member States of the
European Economic Area which have implemented the Prospectus Directive, no
action has been undertaken or will be undertaken to make an offer to the
public of the securities requiring a publication of a prospectus in any
member State. As a result, the shares of ERYTECH may not be offered and
will not be offered in any member State except, pursuant to the exemptions
described in article 3(2) of the Prospectus Directive, if they have been
transposed by this member State or in any other circumstances not requiring
ERYTECH Pharma to publish a prospectus as provided under article 3(2) of
the Prospectus Directive and/or regulations applicable in this member
State. This press release and the information it contains do not constitute
an offer to subscribe or solicitation to purchase or subscribe for ERYTECH
Pharma securities in the United States or in any jurisdiction in which the
operation could be subject to restrictions. The shares or any other
securities of ERYTECH Pharma may not be offered or sold in the United
States unless they are registered under the U.S. Securities Act of 1933, as
amended (the "U.S. Securities Act"), or exempt from registration. The
shares of ERYTECH Pharma have not been and will not be registered under the
U.S. Securities Act and ERYTECH Pharma does not intend to make any public
offer of its shares in the United States. In the United Kingdom, this press
release is addressed to and intended solely to persons who are "qualified
investors" within the meaning of Article 2(1)(e) (i), (ii) ou (iii) of the
Directive Prospectus of the European Union and who are also considered (i)
"investment professionals" (individuals with professional investment
experience) within the meaning of Article 19(5) of the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the
"Order"), (ii) persons entering the field of application of Article
49(2)(a) to (d) ("high net worth companies, unincorporated associations,
etc.") of the Order, or (iii) persons who have received an invitation or
call to participate in an investment activity (within the meaning of
Article 21 of the Financial Services and Markets Act 2000) for the issue or
sale of financial securities could be legally addressed (all of these
individuals are collectively referred to as the "Relevant Persons"). In the
United Kingdom, this document is solely intended to relevant persons and no
other person other than a concerned person may use or refer to this
document. Any investment or investment activity to which this press release
relates is available only to relevant persons and will be engaged in only
with relevant persons. In accordance with Article 211-3 of the AMF General
Regulations, please note that:
- the issue does not give rise to the establishment of a Prospectus
subject to the approval of the AMF. On the other hand, the listing of
the shares to be issue within the scope of the operation shall give
rise to the establishment of a Prospectus approved by the AMF.
- Shares thus subscribed or acquired may only be distributed to the
public, directly or indirectly, under the conditions specified in
articles L. 411-1, L. 411-2, L. 412-1 and L. 621-8 to L. 621-8-3 of the
monetary and financial code.
The distribution of this press release in certain countries may be subject
to specific regulations. The persons in possession of this press release
shall then get knowledge of any local restrictions and shall comply with
these restrictions.
Any decision to subscribe to shares of ERYTECH Pharma must be made only on
the basis of public information on ERYTECH Pharma.
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23.10.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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292988 23.10.2014
DGAP-News: ERYTECH successfully raises EUR30 million for expanding its therapeutic indications in oncology and accelerating its clinical developments
| Source: EQS Group AG