Biotie has completed a directed share issue to Lundbeck and institutional investors
Turku-located Biotie Therapies Corp. has executed a EUR 20 million private placement to institutional and strategic investors. The biggest placement was done by H. Lundbeck A/S.
Biotie Therapies Corp. has announced that it has executed a private placement of 46,511,630 newly issued shares at a subscription price of EUR 0.43 per share. The shares have been allocated to institutional and strategic investors. As a result of the Offering, the share capital of Biotie will be increased by EUR 20,000,000.
The total amount of funds raised in the Offering and in the directed share issue amounts to EUR 30 million and the total amount of new shares issued is 65,116,281 shares.
Timo Veromaa, President and CEO of Biotie Therapies Corp. said, "The additional funds of altogether EUR 30 million that we will receive as a result of the commitment from Lundbeck and the institutional shareholders gives us new opportunities now as we are approaching significant commercial and clinical development milestones. In addition, this solidifies our financial position in discussions with potential commercial partners."
Biotie Therapies announced that H. Lundbeck A/S has subscribed for 18,604,651 shares in Biotie at a subscription price of EUR 0.5375 per share representing an 4.6% equity stake after the share issue and amounting to an investment of EUR 10 million. In connection with this transaction, the worldwide license agreement regarding Selincro (nalmefene) has been amended whereby the royalties on the sales on markets outside the European Union, the European Free Trade Area and the United States are decreased in order to support the possible launching of the product for these markets, and Biotie may receive an additional sales milestone payment in the amount of EUR 5 million in Japan.
Lundbeck holds worldwide development and commercialization rights to Selincro, a new opioid system modulator for alcohol dependence. Lundbeck has filed a marketing authorization application for Selincro in the EU with the European Medicines Agency and a decision on potential approval is expected during H2 2012.
Timo Veromaa, President and Chief Executive Officer of Biotie commented: "We are delighted that our partnership with Lundbeck has led to an equity position in Biotie, demonstrating Lundbeck's commitment to as well as belief in the prospects of Selincro and our Company. We look forward to working with Lundbeck more closely as a key strategic partner."