Pharmaxis Elects to Receive Full NovaQuest Investment
Release Date: 30/10/2013 12:00am
Pharmaceutical company Pharmaxis Ltd (ASX: PXS) today announced that the Company has elected to receive the full US$40 million allowed for under the Financing Agreement signed in January 2013 with NovaQuest Pharma Opportunities Fund III, LP (NovaQuest). The initial investment of US$20 million was made by NovaQuest in February 2013 and an additional US$20 million investment is subject to Pharmaxis meeting certain commercial and regulatory performance criteria including randomisation of the first patient into a US pivotal Phase 3 clinical trial by 17 October 2014.
Pharmaxis entered into the Financing Agreement with NovaQuest to ensure the Company had sufficient funds to pursue the US approval of Bronchitol for cystic fibrosis. Under the terms of the agreement the Company had nine months (until 29 October 2013) to advise NovaQuest if it wished to reduce the additional US$20 million investment. The Company has elected not to reduce the additional investment. Pharmaxis will receive the additional US$20 million investment after the first patient is randomised into the US pivotal Phase 3 clinical trial required by the US Food and Drug Administration to obtain approval of Bronchitol in the United States. The additional investment will be paid in four equal instalments of US$5 million, each three months apart.
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