$80 Million Commitment Provides $20 Million in Cash and
Refinancing of Existing Loan at Reduced Interest Rate
CAMBRIDGE, Mass.--(BUSINESS WIRE)--
Dyax Corp. (NASDAQ: DYAX) announced today that it has entered into a
loan agreement with an affiliate of Cowen Healthcare Royalty Partners
("Cowen Royalty") through which it has received an initial loan of $20
million and a commitment to refinance its existing debt with Cowen
Royalty at a reduced interest rate in August 2012.
The initial loan of $20 million is unsecured and bears interest at an
annual rate of 13% through August 2012 at which time it will be combined
with a second loan tranche. The second tranche will be used to refinance
the Company's outstanding debt of approximately $56.7 million and will
be made at 102% of the original principal amount. Together, the
collective loan will be secured only by the Company's phage display
Licensing and Funded Research Program ("LFRP") and will bear an interest
rate of 12%. It will mature in August 2018 and can be repaid without
penalty beginning in August 2015. Should the second tranche not be
funded, the initial tranche will continue to bear interest at a rate of
13% and will mature on June 30, 2013.
"This loan agreement provides additional balance sheet strength while
reducing the cost of capital of our debt facility," stated Gustav
Christensen, President and Chief Executive Officer of Dyax Corp. "The
LFRP franchise, on which our royalty portfolio is built, remains a key
value driver for Dyax with opportunities for growth fueled by more than
75 biopharmaceutical company licensees and 18 clinical stage programs.
These new funds provide us with the ability to build out Dyax's
angioedema platform as well as grow the KALBITOR business."
"Dyax's LFRP franchise is an asset of significant value that has
performed above our expectations over the past few years. We are pleased
to strengthen our partnership with the Company," commented Gregory B.
Brown, M.D., Co-Founder and Managing Director of Cowen Royalty.
Dyax will continue to receive a share of the LFRP revenues under the new
loan agreement, including participation in revenues derived from
products commercialized by Dyax licensees. The new loan agreement does
not apply to KALBITOR, Dyax's internal drug development programs or to
any of its co-development programs. Upon repayment of all Cowen Royalty
loan amounts, all rights to the LFRP revenues will revert to Dyax.
Please refer to the Current Report on Form 8-K that will be filed by
Dyax with the Securities and Exchange Commission on or about the date
hereof for additional details on the terms of the new loan agreement.
About Dyax's Phage Display Licensing and Funded Research Program
Dyax provides access to its phage display libraries and know-how through
various types of collaborations through its LFRP. In this way, Dyax
offers its partners therapeutic discovery capabilities that also extends
into areas such as imaging, diagnostics, research reagents and affinity
purification. Dyax has more than 75 revenue generating LFRP agreements,
including those with a number of the top biopharmaceutical companies.
The success of the Company's LFRP royalty portfolio is illustrated by
the program's advanced licensee pipeline that includes 18 candidates in
clinical development of which four are in Phase 3 clinical trials, four
are in Phase 2 and ten are in Phase 1.
Dyax is a fully integrated biopharmaceutical company focused on
discovering, developing and commercializing novel biotherapeutics for
unmet medical needs. The Company's lead product, ecallantide, has been
approved under the brand name KALBITOR® in the United States for the
treatment of acute attacks of hereditary angioedema (HAE) in patients 16
years of age and older.
Dyax is commercializing KALBITOR in the United States independently, and
establishing strategic partnerships to develop and commercialize
ecallantide for the treatment of HAE in key regions worldwide.
Currently, Dyax has partnership agreements for regions including Europe,
Japan, Russia, the Middle East, Israel, North Africa, Australia, New
Zealand, Latin America (excluding Mexico), and the Caribbean. The
Company is also exploring other potential indications for ecallantide,
either alone or through partnerships, including drug-induced angioedema.
For more information, visit www.dyax.com.
About Cowen Healthcare Royalty Partners
Cowen Healthcare Royalty Partners is a global healthcare investment firm
with more than $1.5 billion under management. The Firm invests
principally in commercial-stage healthcare companies and products
through drug royalty acquisitions and structured financings. Cowen
Royalty's investment team has over 100 years of healthcare related
experience including principal investing, structured finance, healthcare
industry senior management, Wall Street research and consulting, and
scientific and clinical experience. For more information, visit www.cowenroyalty.com.
This press release contains forward-looking statements, including
statements regarding the anticipated funding of the Subsequent Loan in
August 2012; Dyax's LFRP; the LFRP's potential to generate future
revenues and the potential for Dyax's licensees to bring products to
market. Statements that are not historical facts are based on Dyax's
current expectations, beliefs, assumptions, estimates, forecasts and
projections about the industry and markets in which Dyax competes. The
statements contained in this release are not guarantees of future
performance and involve certain risks, uncertainties and assumptions,
which are difficult to predict. Therefore, actual outcomes and results
may differ materially from what is expressed in such forward-looking
statements. The closing of the Subsequent Loan is subject to customary
closing conditions and any failure of Dyax to satisfy these conditions
or other events, such as any changes in law that would affect Dyax's
ability to secure the loans with the LFRP, could result in the
Subsequent Loan not being funded. Important factors that may affect the
extent of Dyax's patent portfolio and its potential for the
identification of novel compounds include the risks that: Dyax may not
be able to obtain and maintain intellectual property protection for its
phage display technology; others may develop technologies superior to
Dyax's phage display technology; and other risks that are described or
referred to in Dyax's most recent Annual Report on Form 10-K and other
periodic reports filed with the Securities and Exchange Commission. Dyax
cautions investors not to place undue reliance on the forward-looking
statements contained in this release. These statements speak only as of
the date of this release, and Dyax undertakes no obligations to update
or revise these statements, except as may be required by law.
Dyax, the Dyax logo and KALBITOR are the registered trademarks of Dyax
George Migausky, 617-250-5733
and Chief Financial Officer
Source: Dyax Corp.
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