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Translate to raise funds while Takeda sells stake
Posted on Friday, 26 June 2020 10:50
Translate Bio is raising USD 125.00 million in a stock offering that includes a USD 150.15 million sale of existing shares by Takeda Pharmaceutical’s subsidiary Shire Human Genetic Therapies. Goldman Sachs, SVB Leerink and Evercore ISI are acting as joint bookrunning managers, and HC Wainwright and Roth Capital Partners are co-lead managers. Shire is selling its entire 11.4 per cent stake, comprising 6.82 million shares, at USD 22.00 apiece and will no longer have an interest once the offering completes. At the same time, Translate is issuing 5.68 million stocks at the same price to fund clinical development activities, for its lead programme targeting cystic fibrosis, pulmonary, lung and liver diseases. Money raised will also be used to invest in its mRNA platform and manufacturing capabilities, and to support working capital and general corporate activities. Separately, Translate is selling 4.88 million unregistered shares to Sanofi at a price of USD 25.59 for a total USD 125.00 million pursuant to an amended collaboration with Sanofi in March. This revision includes the development of an mRNA vaccine for SARS-CoV-2 as an additional infectious disease pathogen. Earlier this week, it entered into a second amendment to expand the scope of the collaboration and licences granted to Sanofi to include injections for up to seven agents. Pursuant to the revision, the partner agreed to concurrently subscribe for securities, as well as make an additional upfront payment of USD 300.00 million. It may hand over an additional USD 75.00 million if the collaboration is extended for another year. Translate, through the collectively agreement and amendment could receive potential payments of up to USD 1.94 billion upon the achievement of additional specified development, regulatory, manufacturing and commercial milestones. Without giving effect to the Sanofi transaction or the proceeds from its offering, the company expects its cash, equivalents and short-term investments and earlier share sales in March and May would provide sufficient funding into the third quarter of 2021. © Zephus Ltd