Apr 6 2010
BioAlliance Pharma SA (Euronext Paris: BIO), a company dedicated to the treatment and supportive care of cancer and AIDS patients, announces today an exclusive partnership agreement with Therabel Group for the European commercialization rights of Loramyc® and Setofilm® including France and the associated French commercial structure to a newly established entity, Therabel Hôpital Pharma.
BioAlliance will receive from Therabel up to €48.5 million of which €6.5 million as upfront payments including €4.5 million at signature and two annual payments of €1 million each end of 2011 and end of 2012. Additionally €3 million will be linked to Loramyc® reimbursement in three EU countries. The subsequent €33 million are linked to sales performance for the two licensed products. The agreement includes significant royalties on sales commensurate with the two approved products in EU.
The agreement contemplates also an equity investment from Therabel as a strategic partner in BioAlliance for €3 million. This share increase will be subject to shareholders' approval at the next general assembly meeting on April 22. The BioAlliance shares will be subscribed at €5.89 corresponding to a 15% premium over the last 20 business days. A second investment of €3 million with same 15% premium will be subscribed in 2011 subject to shareholders' meeting in 2011.
"We are delighted with this agreement with Therabel as Therabel represents an ideal strategic European partner with a hospital presence in supportive care and pain management. They offer an existing sales structure as well as all the market access support necessary these days to ensure the commercial success of our products. This agreement will bring recurrent royalty revenues to BioAlliance", declares Dominique Costantini, President and CEO of BioAlliance Pharma. "BioAlliance will transfer its commercial experience on Loramyc® to Therabel and would like to thank warmly the team for their efforts and results. BioAlliance will from now on capitalize on its development and registration expertise already validated with Loramyc®, Setofilm® and acyclovir Lauriad® (Phase 3 positive in orofacial herpes) to build shareholder's value in the years to come," concludes Dominique Costantini.
"This significant agreement strongly emphasizes our growth strategy, particularly in Europe in the supportive care area in the hospital setting. Our marketing experience as well as our promotional forces and our European coverage represent an ideal fit with BioAlliance's areas of excellence. We are delighted to add Loramyc® and Setofilm® to our portfolio. These innovative products will enable us to become very competitive in the hospital field," added Jean-Michel Robert, President of the Strategic Committee of Therabel Group.
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