Under the deal, firm transferred certain rights under license agreement with Shionogi & Co. to a new subsidiary.
BioCryst Pharmaceuticals closed a $30 million financing deal, resulting in net proceeds of $23 million. The funding is intended primarily for BioCryst’s R&D efforts including clinical development of BCX4208 and preclinical development programs, among general corporate purposes.
BCX4208 is a purine nucleoside phosphorylase (PNP) inhibitor for the treatment of gout. It is one of three late-stage compounds that BioCryst has in development. Under the deal, BioCryst transferred to a newly formed wholly owned subsidiary, JPR Royalty Sub (JPR), certain rights under BioCryst’s license agreement with Shionogi & Co. These include the right to receive royalty payments from commercial sales of Rapiacta® (peramivir), an antiviral against influenza, and future milestone payments.
BioCryst also transferred to JPR the right to receive payments under a new Japanese yen/U.S. dollar foreign currency hedge arrangement put into place by BioCryst in connection with the transaction.
JPR issued $30 million in aggregate principal amount of its JPR PhaRMA Senior Secured 14% notes due 2020 in a private placement exempt from registration under the amended Securities Act of 1933.
JPR’s primary source of payment of principal, as well as interest and any premium, on the notes will be royalty and milestone payments the BioCryst subsidiary can receive under the license agreement with Shionogi, together with any payments made under the currency hedge arrangement.
BioCryst says its collaboration with Shionogi remains unchanged as a result of the deal. Morgan Stanley acted as placement agent for the transaction.