Chief commercial officer to move to become ceo of DNage
Dutch biotech Pharming Group has agreed partially to sell its DNage subsidiary to reduce its need for cash and focus on bringing its lead product Rhucin to market.
Pharming has agreed with the former shareholders of DNage initially to divest 49% of DNage, which is expected to decrease after DNage secures new investors.
Upon completion of the first step of the spin-off, Pharming’s future earn-out payments of up to €10m due to the former DNage shareholders will be settled by the issue of 5 million Pharming shares and a 49% stake in DNage.
Upon completion of the partial spin-off during the second quarter, Pharming’s chief commercial officer Rein Strijker will resign from Pharming’s board of management to become chief executive and managing director of DNage.
‘Pharming is working hard on the anticipated approval of our lead product Rhucin in the EU and the transition to a commercial phase. Our priority is the commercialisation of Rhucin for acute Hereditary Angioedema (HAE) attacks and the clinical development of C1 inhibitor for the follow-on indications in the field of kidney transplantation,’ said Sijmen de Vries, chief executive of Pharming.
‘Since our goals are to bring our first product to the market this year and to become a cash-flow positive company as soon as possible, we believe that this spin-off transaction is in the best interests of Pharming and our shareholders.’