SAN DIEGO, Jan. 26, 2016 /PRNewswire/ -- Halozyme
Therapeutics, Inc. (NASDAQ: HALO) today announced that it has
closed the previously announced $150
million royalty-backed debt transaction with investment
funds managed by Pharmakon Advisors and Athyrium Capital
Management. The debt is secured by future royalties of
ENHANZE™ products, received only from Halozyme's collaborations
with Roche and Baxalta.
"With the completion of this non-dilutive financing, we are well
funded to initiate our Phase 3 study in pancreatic cancer patients
and continue to execute our two pillar strategy in 2016," said Dr.
Helen Torley, president and chief
executive officer.
The company announced details of the financing on Jan. 4, including the formation of a wholly-owned
subsidiary, Halozyme Royalty LLC ("Halozyme Royalty"), which
borrowed $150 million at a per annum
interest rate of 8.75 percent plus the three-month LIBOR
rate. Under the terms of the credit agreement, Halozyme
Royalty will not be required to apply any of the royalty payments
to repay the loan during 2016. 50 percent of royalty payments
received in 2017 and 100 percent of royalty payments received in
2018 and thereafter will be used to service the loan, subject to
quarterly caps. Royalty payments that are not required to be
applied to the loan will be retained by Halozyme Royalty and
distributed to Halozyme. Repayment of the loan is the sole
obligation of Halozyme Royalty and is intended to be non-recourse
to Halozyme Therapeutics, Inc. and its other subsidiaries.
About Halozyme
Halozyme Therapeutics is a
biotechnology company focused on developing and commercializing
novel oncology therapies that target the tumor microenvironment.
Halozyme's lead proprietary program, investigational drug PEGPH20,
applies a unique approach to targeting solid tumors, allowing
increased access of co-administered cancer drug therapies to the
tumor. PEGPH20 is currently in development for metastatic
pancreatic cancer, non-small cell lung cancer, gastric cancer,
metastatic breast cancer and has potential across additional
cancers in combination with different types of cancer therapies. In
addition to its proprietary product portfolio, Halozyme has
established value-driving partnerships with leading pharmaceutical
companies including Roche, Baxalta, Pfizer, Janssen, AbbVie and
Lilly for its drug delivery platform, ENHANZE™, which enables
biologics and small molecule compounds that are currently
administered intravenously to be delivered subcutaneously. Halozyme
is headquartered in San Diego. For
more information visit www.halozyme.com.
Safe Harbor Statement
In addition to historical
information, the statements set forth above include forward-looking
statements including, without limitation, statements concerning the
possible activity, benefits and attributes of PEGPH20, the
anticipated timing and amount of costs for clinical trials and
expectations of the company's funding levels that involve risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements. The forward-looking
statements are typically, but not always, identified through use of
the words "believe," "enable," "may," "will," "could," "intends,"
"estimate," "anticipate," "plan," "predict," "probable,"
"potential," "possible," "should," "continue," and other words of
similar meaning. Actual results could differ materially from the
expectations contained in forward-looking statements as a result of
several factors, including unexpected expenditures and costs,
unexpected results or delays in development and regulatory review,
regulatory approval requirements, unexpected adverse events and
competitive conditions. These and other factors that may result in
differences are discussed in greater detail in Halozyme's most
recent Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission. Except as required by law, Halozyme undertakes
no duty to update forward-looking statements to reflect events
after the date of this release.
Contacts:
Jim
Mazzola
858-704-8122
ir@halozyme.com
Chris Burton
858-704-8352
ir@halozyme.com
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SOURCE Halozyme Therapeutics, Inc.