Notable financing and financial events over the Christmas period


EP Vantage brings you notable financial and financing events that occurred over the Christmas period.

December 24

San Francisco biotech Anacor Pharmaceuticals, a specialist in boron chemistry, officially withdraws its application for an IPO to raise $58m.

December 29

Following the collapse of a bid to redevelop a Greek container port and significant management chances, Greek pharmaceutical manufacturing company, Alapis,announces that financial advisers, including Deutsche Bank, have been hired to assess strategic planning and evaluate potential strategic alternatives. The company also reports strong current trading and confirms recent guidance for fiscal 2008, of turnover between €900m-€1bn and net profit of between €140m-€170m.

December 30

Pharming, the Dutch biotech which is striving to recover from European regulators’ refusal in early 2008 to grant marketing approval for hereditary angioedema treatment, Rhucin, said it is considering options to raise further cash. After the recent discounted part-redemption and conversion of €20m of the company’s €70m of debt, talks with remaining bondholders are ongoing, while options including project-specific financing, licensing deals, loans and limited equity transactions are being considered. The company confirms it intends to re-file Rhucin in mid-2009, and file in the US in the first quarter of this year. 

US biotech Nymox Pharmaceuticalannounces it has secured $15m equity financing from existing institutional investors, to be used for general corporate purposes.

XenoPortannounces an agreement to sell new shares and warrants, raising $40m. The financing was led by funds affiliated with Maverick Capital with participation by funds affiliated with Venrock. Encouragingly, the placement was priced at close to the current share price; XenoPort stock has climbed to 27% to $27.39 since the announcement.

A number of small drug developers including Cardium Therapeutics and Palatin Technologies receive notification from the NYSE Alternext US exchange informing them that their diminished valuations were risking their listing status.

January 5

Daiichi Sankyoannounces that it plans to record a ¥360bn ($3.9bn) one-time write down in its fiscal third-quarter results as a result of its investment in Ranbaxy Laboratories earlier this year. The Japanese drug maker paid $4.61bn for a controlling stake in the Indian company in June, or 737 rupees a share. Since then the stock has been battered by US FDA investigations which lead to an import ban on the company’s drugs, which combined with the wider economic meltdown has caused Ranbaxy shares to loose 66% of their value since then.

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