2023-03-06 06:16:15 ET
Orchard Therapeutics ( NASDAQ: ORTX ) announced up to $188M in strategic financing to drive the commercialization of its gene therapy product, Libmeldy.
The firm entered into a securities purchase agreement for the sale of ordinary shares and warrants in a private placement. The securities will be sold as a unit comprised of ten ordinary or non-voting ordinary shares plus a warrant to purchase 11 ordinary or non-voting ordinary shares.
At the initial closing (around March 10, 2023), investors will receive a unit at a purchase price of $6.00 (or $0.60 per ordinary share plus a portion of a warrant) for total proceeds of $34M.
At the second closing, investors have committed to purchase additional units at $8.00 each for aggregate proceeds of $34M. The financing could fetch up to $188M at increasing valuations following the achievement of U.S. regulatory milestones for OTL-200 for metachromatic leukodystrophy (MLD).
Net proceeds from the offering will be used to support Orchard's ( ORTX ) growing commercial capabilities, including expanding its commercialization efforts of Libmeldy in Europe, preparing for a potential biologics license application submission and approval for OTL-200 in the U.S., advancing its clinical and pre-clinical stage programs and servicing its existing outstanding debt, as well as for general corporate purposes.
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Orchard Therapeutics announces up to $188M strategic financing