Key Developments For GTC Biotherapeutics, Inc.
GTC Biotherapeutics, Inc. (GTCB.O) (Consolidated Issue listed on NASDAQ Capital Market)
GTC Biotherapeutics, Inc. Announces Reduction In Work Force
GTC Biotherapeutics, Inc. announced that it appropriately restructuring the organization to meet the requirements of these key programs and maximize the impact of cash resources including a reduction in work force from 154 to 109 people. These changes are expected to provide savings of $5-$6 million on an annualized basis.
LFB Provides $10 Million of Funding To GTC Biotherapeutics, Inc.
GTC Biotherapeutics, Inc. announced that LFB Biotechnologies, a wholly owned subsidiary of LFB S.A. (Laboratoire français du Fractionnement et des Biotechnologies S.A., Les Ulis, France) and a strategic shareholder in GTC, has exercised its option to purchase $12.8 million of additional convertible preferred stock under the terms described in the financing agreements approved by GTC shareholders in July 2009. This transaction provides $6.4 million of new cash proceeds to GTC. In addition, LFB has converted the convertible preferred stock it previously purchased under these agreements in July into a total of 10.6 million shares of common stock to support GTC's market capitalization under NASDAQ's listing qualification rules. LFB has also entered into agreements with GTC to purchase $3.6 million of common stock at the October 30, 2009 market closing price of $1.07 per share. This transaction provides LFB with a further 3.4 million shares of common stock. Merriman Curhan Ford acted as financial advisor to GTC in this transaction.
GTC Biotherapeutics, Inc. In-Licenses Recombinant Human Alpha-Fetoprotein from Merrimack Pharmaceuticals
GTC Biotherapeutics, Inc. announced that it has obtained exclusive worldwide rights to the development and commercialization of recombinant human alpha-fetoprotein (rhAFP), including the recombinant, non-glycosylated version of rhAFP known as MM-093, for the treatment of autoimmune diseases from Merrimack Pharmaceuticals. GTC will receive an initial inventory of bulk drug substance suitable for use in clinical studies. GTC will also assume control of the transgenic goats that express rhAFP in their milk, which were originally developed by GTC for Merrimack and are cared for in GTC`s facilities. GTC intends to further develop rhAFP through commercial partnering.
GTC Biotherapeutics, Inc. Enters Agreements with LFB for Funding of $12.3 Million with Option for LFB to Fund Additional $6.4 Million
GTC Biotherapeutics, Inc. announced that it has entered into agreements with LFB Biotechnologies, a wholly owned subsidiary of LFB S.A., a current strategic shareholder in the Company, to provide a total of $12.3 million of cash proceeds to the Company with an option to provide up to an additional $6.4 million of cash proceeds. The financing consists of bridge debt and, subject to the Company shareholder approval, convertible preferred stock. The Company is receiving $4 million of cash proceeds under a $4.5 million secured convertible bridge note delivered upon signing, with an additional $8.3 million of cash proceeds due upon the receipt of the Company shareholder approval and issuance of the convertible preferred stock. The bridge debt will automatically convert into convertible preferred stock upon shareholder approval. The convertible preferred stock will carry a 10% dividend over five years, and the total coupon amount of $12.8 million will be fully funded by LFB Biotechnologies and placed into escrow at closing to secure the future dividends from this convertible preferred stock. The conversion price for 47% of the convertible preferred stock will be $2.63 per share of common stock, representing a total of 4,562,738 shares, and for the remaining 53% it will be at $2.63 per share or the market price at shareholder approval, whichever is lower, representing at least 5,133,079 shares of common stock.
GTC Biotherapeutics, Inc. Announces Launch of ATryn in U.S. By Lundbeck Inc.
GTC Biotherapeutics, Inc. announced that ATryn (Antithrombin [Recombinant]) is available commercially through Lundbeck Inc. of Deerfield, IL, a wholly owned subsidiary of H. Lundbeck A/S in Denmark, GTC Biotherapeutics, Inc.`s commercialization and development partner in the United States. GTC is due to receive a total of $1 million from Lundbeck for its initial inventory of ATryn. Antithrombin is a naturally occurring protein that helps regulate the blood clotting mechanism in the body. People with hereditary antithrombin deficiency lack sufficient antithrombin, putting them at increased risk for venous thromboembolic events (VTE), including pulmonary embolism and deep vein thrombosis, which can be life threatening, particularly in the high-risk situations of surgery or childbirth.
