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Aug 6, 2008

Dyax Uses $50M Loan to Repurchase Paul Capital Partners’ Royalty Interest in Phage Display Franchise

  • Dyax received a $50 million loan from Cowen Healthcare Royalty Partners (CHRP) through its phage display Licensing and Funded Research Program (LFRP). The company has already used part of the proceeds to repurchase the LFRP revenue interest granted to Paul Capital Partners in August 2006.

    In connection with the loan, Dyax issued to CHRP a warrant to purchase 250,000 shares of the company’s common stock at a 50% premium over the 30-day average closing price. The warrant has an eight-year term.

    Net proceeds from the loan are approximately $15 million before transaction fees. The loan agreement does not apply to Dyax’ internal drug development or to any of its codevelopment programs.

    The loan, which matures in August 2016, bears interest at an annual rate of 16%, payable quarterly. Dyax retains a substantial interest in the LFRP revenues including participation in revenues derived from products commercialized by Dyax licensees. Upon repayment of the loan, all rights to the LFRP revenues will revert to Dyax.

    Dyax provides access to its phage display libraries through through its LFRP. In this way, Dyax offers its partners therapeutic discovery capabilities and also extends its reach into noncore areas such as imaging, diagnostics, research reagents, and affinity purification. To date, Dyax has LFRP agreements with more than 70 licensees and collaborators, resulting in thirteen clinical-stage product candidates and one approved product.



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