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Intarcia Exercises Re-Opener for Its Recently Closed Royalty / Equity Convert Financing – Raising Total to $300 Million

Intarcia Exercises Re-Opener for Its Recently Closed Royalty / Equity Convert Financing – Raising Total to $300 Million

  • Due to strong investor demand, Intarcia exercised a re-opener for its recent royalty / equity conversion financing to a total raise of $300 million from $225 million closed just over one month ago. Investors are making this investment in exchange for 2% of future global net sales of ITCA 650 (an investigational once or twice-yearly GLP-1 receptor agonist currently in Phase 3 for type 2 diabetes) instead of the 1.5% announced in the original deal.
  • All investors taking part in the $300 million financing have the option to convert their synthetic royalty interests into Intarcia common stock at a $5.5 billion Company valuation during an agreed upon conversion period.
  • Intarcia’s innovative private financing and the billion dollars plus in upfront and potential milestone payments from its recent ex-U.S. partnership with Servier place the Company in a very strong financial position through the anticipated approval and planned early launch of ITCA 650 in the U.S. in 2017.

Boston, MA – June 2, 2015Intarcia Therapeutics, Inc. today announced the closing of an additional $75 million from its recently announced synthetic royalty / equity convert financing, bringing the total amount raised to $300 million. Investors have purchased Convertible Limited Recourse Notes from Intarcia and are entitled to receive quarterly payments equal to 2.0% of any future global net sales of ITCA 650 until the notes mature or are fully paid. Investors also have the option, commencing upon U.S. regulatory approval of ITCA 650 and ending on the later of the second anniversary of the approval or December 31, 2019, to convert their synthetic royalty interests into Intarcia common stock at a conversion price corresponding to an equity valuation of $5.5 billion.

Intarcia is developing ITCA 650 for the treatment of type 2 diabetes. If approved, ITCA 650 would be the first injection-free glucagon-like peptide-1 (GLP-1) receptor agonist therapy capable of delivering up to a full year of treatment from a single mini-pump placement. Data from two positive Phase 3 trials of ITCA 650, FREEDOM-1 and FREEDOM-1 HBL (high baseline), are being presented at the upcoming 75th Scientific Sessions of the American Diabetes Association that begins on June 5th in Boston.

“Tremendous interest in our most recent private financing continued after we closed it just a month ago,” said Kurt Graves, Chairman, President and CEO of Intarcia. “We decided to expand the opportunity to a select set of investors who really understand what we are aiming to do and the strong potential that ITCA 650 holds in type 2 diabetes. They also realize what our novel delivery platforms hold in terms of potential promise across a host of major chronic diseases like diabetes, obesity, and autoimmune diseases where we are initiating additional pipeline work. At Intarcia we believe in challenging the status quo and opening new and improved pathways to help patients while retaining our independence and strategic control of our future. While our products will always be our most important innovations, this novel royalty and equity-conversion financing is just another example of being disruptively innovative to advance the mission for our Company. Both the novel structure and the total size of this deal are unprecedented, and it puts us in a strong position over the next two to three years when we are highly focused on execution.”

Morgan Stanley & Co. LLC acted as sole structuring agent to Intarcia on this novel transaction. PhaRMA℠ is a service mark of Morgan Stanley.

About Intarcia Therapeutics, Inc.
Intarcia Therapeutics, Inc. is an independent, privately held, biopharmaceutical company developing therapies to enhance treatment outcomes by optimizing and improving the efficacy, continuous administration and tolerability of drug therapies. In addition, delivering medicines just once- or twice-yearly has the potential to ensure improved patient adherence and compliance, which is very poor in most chronic diseases. Intarcia's drug development expertise and competitive edge are demonstrated by its abilities to stabilize proteins and peptides at above-body temperature and to deliver them in a constant and consistent manner via Intarcia's proprietary technology platform. Intarcia is conducting a Phase 3-stage development program for type 2 diabetes that consists of four separate clinical trials, two of which have been completed. Intarcia continues to conduct research and development, utilizing its platform technology, to treat other chronic serious disorders in the field of diabetes, obesity and autoimmune diseases. For more information about Intarcia, please visit www.intarcia.com.

About ITCA 650
ITCA 650 is being developed for the treatment of type 2 diabetes, combining Intarcia’s proprietary technology platform involving a matchstick-size, miniature osmotic pump that is placed sub-dermally to provide continuous and consistent drug therapy, and the company’s proprietary formulation technology, which maintains stability of therapeutic proteins and peptides at human body temperatures for extended periods of time. Exenatide, the active agent in ITCA 650, is a glucagon-like peptide-1 (GLP-1) receptor agonist currently marketed globally as twice-daily and once-weekly self-injection therapies for type 2 diabetes. If approved, ITCA 650 would represent the first injection-free GLP-1 therapy capable of delivering up to a full year of treatment from a single device placement. ITCA 650 is currently in a global Phase 3 clinical trial program called FREEDOM.

Intarcia and its logo are registered trademarks of Intarcia Therapeutics, Inc.

 

INVESTOR CONTACT

Intarcia Therapeutics, Inc.
James Ahlers
james.ahlers@intarcia.com
(510) 782-7800

MEDIA CONTACTS

Intarcia Therapeutics, Inc.
Paulina Bucko
paulina.bucko@intarcia.com
(857) 880-1442

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