Amicus Therapeutics acquires Callidus Biopharma, announces financing

theflyonthewall.com

Amicus Therapeutics (FOLD) announced a strengthening of its biologics business strategy. Amicus has acquired Callidus Biopharma, a privately-held biologics company focused on developing best-in-class enzyme replacement therapies for lysosomal storage diseases. Under terms of the agreement, Callidus shareholders will receive $15M in shares of Amicus common stock; up to $10M in milestone payments through Phase 2 development of the Pompe program; and up to $105M for the achievement of late-stage development, regulatory, and approval milestones spread across three products. Also, Amicus has secured approximately $40M in equity and expected debt financing. $15M was raised in a private placement of 7.5M shares of common stock priced at $2.00 per share, plus the issuance of warrants to purchase an additional 1.6M shares at $2.50/share, with a one-year term exercisable between July 1, 2014 and June 30, 2015. Participants were Redmile Group and GSK (GSK). $25M in debt financing expected to close in coming weeks, at a cost of capital of less than 10%, with no warrant coverage. The company projects that the current cash position, including the proceeds from the private placement and debt financings, are sufficient to fund operations into late 2015.

View Comments