Fortress Biotech, the incubator at the center of a stock market scandal two summers ago, is taking out a loan to refinance its existing debt.
The company is borrowing $ 60 million through Oaktree Capital Management, with the loan due in five years. Fortress will repay the loan first with quarterly payments of 11% interest until 2025, and then with the full principal amount on the fifth anniversary of the loan, according to the SEC filing.
Fortress can also repay Oaktree prior to loan maturity at any time, with a prepayment charge required during the first four years.
Back in August 2018, Reuters fall an explosive report on how Fortress bought and used a brokerage firm, National Holdings, to tout its own startups without revealing the connection between the two companies until reporters started asking questions about it. This included not informing investors in analysts’ notes of potential conflicts of interest.
Fortress ended up selling its 56.1% stake in National a few months later to B. Riley Financial.
Also on Friday, Fortress ad that a Menkes disease control program from one of its partner companies, Cyprium Therapeutics, had met its primary endpoint of overall survival from birth. The mean survival was 14.8 years versus 1.3 years in an untreated historical control group. – Max Gelman
Entasis secures $ 25 million private placement for PhIII trial
AstraZeneca spin-out Entasis Therapeutics set to close $ 25 million contract private placement with Innoviva and other investors on September 1.
The company plans to sell 9,345,794 shares at $ 2.675 each. The announcement comes two years after Entasis $ ETTX Beginning of the Nasdaqt. In September 2018, the Waltham, MA-based company valued the shares at $ 15 apiece, below a set range of $ 16 to $ 18.
Entasis plans to use the proceeds to continue a phase III trial of its sulbactam-durlobactam, used to treat pneumonia and blood infections caused by resistant carbapenems. Acinetobacter baumannii. The drug, a class A, C and D β-lactamase inhibitor, has received fast-track designation from the FDA. – Nicole De Feudis
Virios requests $ 35 million IPO to develop fibromyalgia drug
Alpharetta, Virios Therapeutics based on GA $ VIRI announced on Friday that it was seeking to go public. Biotechnology deposit for a raise of $ 35 million, which he plans to use to push his fibromyalgia drug to Phase III.
The number of biotech debuts this year has already surpassed that of 2019. Companies taking advantage of the boom have raised over $ 11 billion combined.
Virios, founded in 2012, says it will use IPO funds to complete a Phase IIb trial and chronic toxicology studies of its lead candidate, IMC-1. Antiviral therapy is designed to suppress the activation and replication of the herpes simplex-1 virus. Virios expects to read the first data from the IIb in early 2022. – Nicole De Feudis
Pfizer expands another CRO, this time with Parexel
Large CRO Parexel announced a new contract with Pfizer to provide clinical development services.
Parexel will work with Big Pharma for the next three years with an option to extend the partnership for two more. The companies have collaborated for the past decade, Parexel said in a statement.
Services will be administered across all of Pfizer’s therapeutic areas, including rare diseases, oncology, inflammation and immunology, and in-house and hospital medications.
This is the fourth CRO deal Pfizer has entered into in recent months, adding the Parexel deal to others with Icon, Syneos Health and PPD. – Max Gelman