Santhera Closes Financings and Secures Funds to Reach Break-Even Expected in 2026
13 Agosto 2024 - 12:00AM
Ad hoc announcement pursuant to Art. 53 LR
Pratteln, Switzerland, August 13,
2024 – Santhera Pharmaceuticals (SIX: SANN) announces the closing
of two financing agreements that provided the Company with gross
funding totaling approximately CHF 69 million. Together with
existing cash resources, this will support the Company's growth
initiatives, repayment of maturing convertible bonds and liquidity
through to the first half of 2026, at which point Santhera expects
to be cash flow break-even.
CHF 35 million received from
Highbridge under a new term loan agreement Santhera
received CHF 35 million from a term loan financing from
certain funds managed by Highbridge Capital Management, LLC
(Highbridge) with a four-year maturity and an interest rate of
3-month SARON plus 9.75%. The transaction includes changes to the
existing Highbridge private convertible bonds, extending CHF 7
million with a strike price of CHF 10 by 12 months to August
2025, and converting CHF 4 million, with a strike price of
CHF 5 as well as issuing the new warrants to Highbridge.
USD 30 million received from
R-Bridge for partial and capped royalty monetization Upon
closing of the royalty monetization financing agreement, R-Bridge
paid an upfront of USD 30 million to Santhera and will make
staged sales-related milestone payments that, if achieved, would
result in total payments to Santhera of a further USD 8
million.
The royalty agreement with R-Bridge is partial
and capped. Santhera is monetizing 75% of the future royalty income
streams (net of any agreed payment obligations of Santhera to
ReveraGen and Idorsia) from its licensing agreements for AGAMREE®
with Catalyst Pharmaceuticals, Inc. and with Sperogenix
Therapeutics Ltd., in respect of net product sales occurring from
July 1, 2024. Once the agreed threshold or duration of royalty
payments is met, the North America and China royalty payments will
revert back to Santhera. In addition, Santhera retained certain
rights to buy back the royalty income stream.
CHF 72 million proforma cash
balanceFollowing closing of the financings, the proforma
cash balance is CHF 72 million (August 13, 2024) after
receipt of CHF 58 million net of transaction fees. After
repayment of the maturing listed convertible bonds and interest in
the amount of CHF 14 million, the remaining cash balance is
expected to provide sufficient funding through to 2026.
Further details on the two financings were
announced on June 18, 2024, and can be viewed here.
About SantheraSanthera
Pharmaceuticals (SIX: SANN) is a Swiss specialty pharmaceutical
company focused on the development and commercialization of
innovative medicines for rare neuromuscular and pulmonary diseases
with high unmet medical need. The Company has an exclusive license
from ReveraGen for all indications worldwide to AGAMREE®
(vamorolone), a dissociative steroid with novel mode of action,
which was investigated in a pivotal study in patients with Duchenne
muscular dystrophy (DMD) as an alternative to standard
corticosteroids. AGAMREE for the treatment of DMD is approved in
the U.S. by the Food and Drug Administration (FDA), in the EU by
the European Medicines Agency (EMA), and in the UK by the Medicines
and Healthcare products Regulatory Agency (MHRA). Santhera has
out-licensed rights to AGAMREE for North America to Catalyst
Pharmaceuticals, Inc. and for China to Sperogenix Therapeutics. For
further information, please visit www.santhera.com.
AGAMREE® is a trademark of Santhera
Pharmaceuticals.
For further information please
contact: public-relations@santhera.com orEva Kalias, Head
Investor Relations & CommunicationsPhone: +41 79 875 27
80eva.kalias@santhera.com
Disclaimer / Forward-looking
statements This communication does not constitute an offer
or invitation to subscribe for or purchase any securities of
Santhera Pharmaceuticals Holding AG. This publication may contain
certain forward-looking statements concerning the Company and its
business. Such statements involve certain risks, uncertainties and
other factors which could cause the actual results, financial
condition, performance or achievements of the Company to be
materially different from those expressed or implied by such
statements. Readers should therefore not place undue reliance on
these statements, particularly not in connection with any contract
or investment decision. The Company disclaims any obligation to
update these forward-looking statements.
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