4SC AG, of Planegg-Martinsried, Germany, said it issued convertible notes in the amount of €500,000 (US$657,600). The notes constituted the second tranche of a total issuance of up to €15 million guaranteed by an agreement between YA Global MasterSPV Ltd. An initial tranche of €500,000, issued in March, was completely converted into shares. 4SC plans to use the proceeds to prepare a planned phase II study of its cancer candidate, resminostat, in liver cancer. In May, the company inked an agreement with Japanese partner Yakult Honsha Co. Ltd., of Tokyo, to initiate a phase IIb trial of the histone deacetylase inhibitor in Japan. (See BioWorld Today, May 9, 2014.)
Clovis Oncology Inc., of Boulder, Colo., said it plans to offer $200 million in convertible senior notes due 2021 in a private placement to qualified institutional buyers. The company plans to grant initial purchasers a 30-day option to purchase up to $30 million in additional notes on the same terms and conditions, which will be determined when the offer prices. Clovis said net proceeds will be used to fund its development programs, payments of milestones pursuant to its license agreements and other business purposes.
Depomed Inc., of Newark, Calif., said it plans to offer $230 million in convertible senior notes due 2021. The company plans to grant underwriters a 30-day option to purchase up to an additional $34.5 million of the notes. Morgan Stanley & Co. LLC and RBC Capital Markets LLC are joint book-running managers for the offering, which is not yet priced. Depomed did not disclose a specific use for the proceeds. The notes, which mature on Sept. 1, 2021, are expected to pay interest semi-annually and will be convertible into cash, shares of Depomed's common stock or a combination of cash and shares, at Depomed's election.
Immusoft Corp., of Seattle, closed its first institutional investment round. Although total proceeds were not disclosed, FF Science, an initiative of Founders Fund, led the round with a $2 million investment, with follow-on funding from venture capitalist Tim Draper and Commodore Partners. The company plans to use the proceeds to advance its immune system programming technology toward human trials. (See BioWorld Today, Aug. 20, 2012.)
Otonomy Inc., of San Diego, said underwriters of its initial public offering (IPO) of 6.25 million shares exercised in full their option to purchase an additional 937,500 shares at $16 apiece, generating net proceeds of approximately $104 million from the IPO. J.P. Morgan Securities LLC and BofA Merrill Lynch acted as joint book-running managers, Piper Jaffray & Co. acted as lead manager and Sanford C. Bernstein & Co. LLC acted as co-manager for the offering. On Wednesday, the company's shares (NASDAQ:OTIC) closed at $19.71, up a penny. (See BioWorld Today, July 15, 2014, and Aug. 14, 2014.)
Plethora Solutions Holdings plc, of Oxfordshire, UK, entered agreements to raise approximately £15.9 million (US$26.2 million) by placing approximately 177 million new ordinary shares at 9 pence apiece and approximately 88.5 million warrants that may be exercised at 15 pence apiece. The company said proceeds will be used to fund payments to Shionogi & Co. Ltd., of Osaka, Japan, Paul Capital and the original patent holder for PSD502, providing Plethora with the economic benefit of future revenue streams from PSD502 on a global basis; to fund the preparation of a new drug application with the FDA; and for other corporate purposes. Daniel Stewart & Co. plc and Hybridan LLP were the placement agents. The specialty pharma also said it is in the advanced stages of negotiating a European licensing agreement with a European partner to commercialize lead compound PSD502 in Europe, Russia, the Commonwealth of Independent States, Turkey and North Africa. Plethora would retain full commercialization rights for the rest of the world. PSD502, an aerosol formulation the marketed drugs lidocaine and prilocaine, is designed to treat premature ejaculation.