Replies to post #74209 on Biotech Values

[rkrw]

My info was wrong on the put option by 2 years, it's June 2011. But it may be triggered sooner.

We currently have $100 million of convertible debt outstanding, which we will be required to repay, plus accrued and unpaid interest, on June 15, 2011 if our bondholders exercise their put option, as well as upon a change of control or termination of trading of our common stock on the NASDAQ stock market. As we announced in early February, the NASDAQ panel has granted us continued listing status on the NASDAQ global market. This ruling is subject to the conditions that on or more May 11, 2009 Epix must evidence compliance with the NASDAQ marketplace rules that requires a minimum shareholder equity of $10 million, or that the market value of our listed securities be $50 million or more.

[rkrw]

Epix finally sold Vasovist. It's actually pretty sad, $18M net they'll receive. I'm taking a wild guess, but they must have spent over $100M on this all told. And below an offer to close out the debt holders which would be a good thing. But if I owned the cv debt i'd consider declining taking my chances.

LEXINGTON, Mass.--(BUSINESS WIRE)--EPIX Pharmaceuticals, Inc. (NASDAQ:EPIX - News), a biopharmaceutical company focused on discovering and developing novel therapeutics through the use of its proprietary and highly efficient in silico drug discovery platform, today announced that it has sold the U.S. (including Puerto Rico), Canadian and Australian rights for MS-325 (formerly marketed as Vasovist, gadofosveset trisodium, by Bayer Schering Pharma) its novel blood pool magnetic resonance angiography (MRA) agent, to Lantheus Medical Imaging, Inc. for aggregate gross cash proceeds of $28 million. EPIX will continue to own European and other non-U.S. rights (other than in Canada and Australia) for the imaging agent enabling it to pursue further monetization of these rights. EPIX will pay $10.5 million of the cash proceeds from the transaction to Bayer Schering Pharma AG, Germany, to satisfy its obligations related to U.S., Canadian and Australian Vasovist development costs. EPIX and Bayer Schering Pharma had a collaboration and commercialization agreement for Vasovist that terminated as of February 28, 2009.


Under the terms of the Exchange Offer, EPIX will issue in exchange for each $1,000 in principal amount of Notes properly tendered and accepted for exchange, a cash payment of $180.00, 339 shares of common stock, par value $0.01 per share, and one contingent value right (“CVR”). Subject to certain exceptions, each CVR represents a contractual right to receive additional payments if, within nine months after completion of the Exchange Offer or earlier in certain circumstances, the company consummates any future repurchase of Notes not tendered in the Exchange Offer at a value that exceeds that offered in the Exchange Offer. The company intends to use the net cash proceeds from the sale of its U.S., Canadian and Australian rights for MS-325 (formerly marketed as Vasovist®, gadofosveset trisodium, by Bayer Schering Pharma), its novel blood pool magnetic resonance angiography (MRA) agent, to Lantheus Medical Imaging, Inc., which was announced separately today by the company. If all Notes are tendered in the Exchange Offer, the noteholders would receive $18 million and an aggregate of 33,900,000 common shares, representing approximately 44.7% of the total outstanding common stock of EPIX immediately following consummation of the Exchange Offer. The company currently has 41,947,441 shares of common stock outstanding.