FRAMINGHAM, Mass.--(BUSINESS WIRE)--GTC Biotherapeutics, Inc. (“GTC”, NASDAQ: GTCB) announced that LFB Biotechnologies, a wholly owned subsidiary of LFB S.A. (Laboratoire français du Fractionnement et des Biotechnologies S.A., Les Ulis, France) and a strategic shareholder in GTC, has exercised its option to purchase $12.8 million of additional convertible preferred stock under the terms described in the financing agreements approved by GTC shareholders in July 2009. This transaction provides $6.4 million of new cash proceeds to GTC. In addition, LFB has converted the convertible preferred stock it previously purchased under these agreements in July into a total of 10.6 million shares of common stock to support GTC’s market capitalization under NASDAQ’s listing qualification rules. LFB has also entered into agreements with GTC to purchase $3.6 million of common stock at the October 30, 2009 market closing price of $1.07 per share, subject to customary closing conditions. This transaction provides LFB with a further 3.4 million shares of common stock.
“LFB shares GTC’s vision of being an innovative company -- trading on the NASDAQ market -- that is developing recombinant versions of plasma proteins and monoclonal antibodies, including biosimilars,” stated Christian Béchon, LFB’s Chairman & CEO. “GTC’s unique approved transgenic production technology enables us to jointly meet cost and production capability targets that provide a significant competitive advantage over other production systems. We particularly look forward to further advances in our joint factor VIIa program for hemophilia which is planned to move into the clinic in the first half of 2010.”
“LFB has demonstrated its strong commitment to GTC in both the pipeline of programs in the joint venture collaboration and its continuing strategic investment in our company,” stated Geoffrey F. Cox, Ph.D., GTC’s CEO and Chairman of the Board. “LFB’s commitment is particularly valuable in the uncertain market conditions for small and growing biotechnology companies. The investments and conversion into equity announced today are very important stepping stones to help GTC’s goal to meet NASDAQ’s listing compliance requirements. In addition to these equity transactions, GTC will be reducing expenses by focusing on the ATryn® and factor VIIa programs, which is expected to generate savings of $5 – 6 million in 2010.”
Merriman Curhan Ford acted as financial advisor to GTC in this transaction.
About GTC Biotherapeutics
GTC Biotherapeutics develops, supplies and commercializes therapeutic proteins produced through transgenic animal technology. ATryn®, GTC’s recombinant human antithrombin, has been approved for use in the United States and Europe. ATryn is the first and only product produced in transgenic animals to be approved for therapeutic use anywhere in the world. In addition to ATryn, GTC is developing a portfolio of recombinant human plasma proteins with known therapeutic properties. These proteins include recombinant forms of human coagulation factors VIIa and IX, which are being developed for the treatment of hemophilia. GTC is also developing a portfolio of follow-on biologic monoclonal antibodies and a CD20 antibody with enhanced ADCC (antibody-dependent cell-mediated cytotoxicity). GTC’s intellectual property includes a patent in the United States through 2021 for the production of any therapeutic protein in the milk of any transgenic mammal. GTC’s transgenic production platform is particularly well suited to enabling cost effective development of proteins that are difficult to express in traditional recombinant production systems as well as proteins that are required in large volumes. Additional information is available on the GTC web site, http://www.gtc-bio.com.
LFB is a biopharmaceutical group that develops, manufactures and markets medicinal products for the treatment of serious and often rare diseases in several major therapeutic fields, namely Hemostasis, Immunology and Intensive Care. LFB Group is the leading manufacturer of plasma-derived medicinal products in France and 6th worldwide and is also among the leading European companies for the development of monoclonal antibodies and new-generation proteins based on biotechnologies. With its strong focus on research, the LFB Group is pursuing a growth strategy that seeks to extend its activities at the international level and develop innovative therapies. In 2008, LFB reported total turnover of 352,4 million euros, an increase of 9%, and invested 66,6 millions euros in product development. LFB markets its products in 20 countries around the world.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including without limitation the prospects for regaining compliance with NASDAQ listing requirements and the development of recombinant factor VIIa in 2010. Such forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such statements. Factors that may cause such differences include, but are not limited to, the risks and uncertainties discussed in GTC's most recent Annual Report on Form 10-K and its other periodic reports filed with the Securities and Exchange Commission, including the risks and uncertainties associated with development of new biological products and dependence upon the actions of regulatory agencies. GTC cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this document, and GTC undertakes no obligation to update or revise the statements, except as may be required by law.