Pharming Group N.V. has announced that it has closed a new financing round, comprising three financial instruments and a rights issue, providing a total of €104 million before costs.
The financing will be used to pay the upfront amount of $ 60 million (approximately € 56.1 million) for completion of the transaction with subsidiaries of Valeant Pharmaceuticals International, Inc. signed on 9 August 2016 for Pharming to acquire the commercialisation rights to its own high quality Heritary Angioedema therapy RUCONEST® in North America.
The balance after costs of approximately € 19.3 million will be used to boost sales of RUCONEST® in North America as well as in the additional countries in Western Europe and the Middle East in which Pharming is selling the product directly.
Dr Sijmen de Vries, Pharming’s CEO, commented:
The uptake of the rights issue was extremely high given the time of year and the turbulent market environment, at a very small discount
“We are very pleased to have put together a financing package that minimises dilution of existing shareholders and brings additional high-quality investors. We can now complete the transformational transaction with Valeant, move RUCONEST’s commercialisation forward quickly and enable Pharming to reach profitability potentially as much as three years earlier than under the Valeant license. The uptake of the rights issue was extremely high given the time of year and the turbulent market environment, at a very small discount. It demonstrates the confidence that shareholders have in Pharming’s strategy and future. We anticipate that we will be able to close the Valeant transaction quite quickly, enabling us to focus on delivering value for all our shareholders.”