BTW - Morgan Stanley did the deal. Maybe they are the bondholders. If that's so, they would probably foreclose and sell the rights back to Shionogi.
The interest (14%) is due annually on Sept. 1 (see BCRX website 2013.) Look out.
BioCryst Announces Close of $30 Million Financing Transaction Related to Future RAPIACTA ( R ) Payments
RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)-- BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) today announced that it has closed a $30 million financing transaction to monetize certain future RAPIACTA® (peramivir) payments from Shionogi & Co., Ltd. BioCryst intends to use its net proceeds received for general corporate purposes, primarily funding BioCryst's research and development efforts, including clinical development of BCX4208 and pre-clinical development programs.
Stuart Grant, Senior Vice President and Chief Financial Officer of BioCryst Pharmaceuticals said, "This non-dilutive financing significantly extends BioCryst's cash runway and it provides additional financial flexibility as BioCryst advances its pipeline toward important clinical milestones and other potential value creating events."
Under the terms of the transaction, BioCryst transferred to JPR Royalty Sub LLC ("JPR"), a newly-formed wholly-owned subsidiary of BioCryst, certain rights under BioCryst's license agreement with Shionogi, including the right to receive royalty payments from commercial sales of RAPIACTA® and future milestone payments. As part of the transaction, 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. BioCryst's collaboration with Shionogi remains unchanged as a result of the transaction.
As part of the transaction, JPR issued $30 million in aggregate principal amount of its JPR PhaRMA Senior Secured 14% Notes due 2020 (the "Notes") in a private placement exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). The Notes bear an interest rate of 14.0%, with interest payable annually on September 1st of each year,.
I may be foolish, but I've seen this pattern all too often and I have been taking advantage of it.
BCRX goes up, it goes down, like a roller coaster. Sold in early Aug, bought more today.
Through the years, I've done alright that way. Never bet the farm. Centocor, Immunex, OSI, they all had the same pattern of gain and decline, and had one excellent product which was managed very well. They succeeded. Good product, managed well.
But Biocryst has 3 products, which I believe are being very well managed indeed. 3.
And Biocryst management has been very solid of late. So I say, play the ups and downs people.
Yes Mensa, please provide some proof of your statement. I'm NOT disagreeing; just would like proof for such broad statements.
So is this action because of Ebola?
And whadya know, Tekmira is up 11%, after steeply sliding for a few days.
Makes you realize that predicting where this is going and when is a fool's errand; but it's kind of fun, if that's your muse.
Mdaddy -- I'm not clear why you say today is a deadline for certain shorts to cover. Are you referring to the number of days to borrow shares so your not "naked"?
How come everyone's so quiet now that stock is down, and Tekmira is still up. My bet is that JPM is playing games. Coverage starts, and let the games begin. I've seen it before.
I haven't found any reference to a patent application for BCX4430 yet. The appendix to the nature article presents the formula and synthesis. Replace the nitrogen in the pyrolizine ring that connects to the ribose sugar with a carbon, and replace the ether oxygen in ribose with nitrogen; then make it a water soluble hydrochloride salt. Voila, organic chemistry magic. I love organic chemistry.
After my last 20% sell when BCRX hit $13 (wifee, the sell person in the family, told me to,) we bought back at $11.3. Sold 1000 this morning at 14.25, and consider myself lucky. 3400 Shares left. My 6 year affair with Biocryst has been well worth the wait.
Under founder Charles Bugg's financial leadership, not so much, even though under him Peramivir was invented.
One comment about developing drugs for rare diseases (Ebola.) It's a very slow process. It just is, because that's the way science works. I really resent the folks who expect problems to be solved because they think its so easy, and they're smarter than everyone else. If you're so smart, go to work on solving the problem yourself, and stop whining so much about others.
Tests on woman who got sick at Gattwick airport after flight from Sierra Leone were negative for Ebola. -- Daily Mail.
Somebody shorted heavily in early July. Meanwhile sell-side analysts for the most part say (strong) buy. Same information out there? Or is there an alternate info universe?