Thanks to Dew, I got out of this DOG er Goat -
GTC Biotherapeutics Announces New $7 Million Financing, Company Restructuring and Management Changes
GTC Biotherapeutics, Inc. (“GTC”, OTCBB: GTCB) announced the closing of a new $7 million secured convertible debt financing by its strategic partner, LFB Biotechnologies SAS (“LFB” Les Ulis, France), in connection with a restructuring of GTC’s operations which will result in a downsizing of approximately 30 full-time positions at its headquarters and an additional 20 positions at its farm facility. In addition, Geoffrey Cox and several other members of the current senior management team will be leaving GTC. Board member William Heiden has been named Chairman, CEO and President.
The convertible debt will mature on June 15, 2013 and will bear interest at an annual rate of 4%, with a single payment of principal and interest at maturity. LFB may convert the debt into GTC common stock at a conversion price of $ 0.42 per share at any time.
“We are pleased to announce this financing, which is a strong show of support from our strategic partner LFB Biotechnologies. At the same time, I would like to thank the departing members of management and employees for all of their hard work and diligent efforts on behalf of GTC,” commented in-coming CEO William Heiden. “Looking ahead, GTC will concentrate its efforts on achieving three key goals: to progress the Factor VIIa program into first-in-man studies, currently expected to begin late this year; to improve the financial performance of ATryn®, the first product developed, approved (in the US and EU) and manufactured using GTC’s transgenic technology; to leverage the power of our transgenic platform to advance additional protein therapeutic candidates, especially in the area of ‘bio-similar’ product candidates. I believe that GTC is uniquely positioned to deliver improved versions of existing biotherapies, at lower cost and with greater manufacturing flexibility than other production systems. In summary, narrowing our focus and reducing the size of operations will significantly decrease our on-going financial resource requirements and enhance our ability to achieve our longer term strategic goals.”
Christian Béchon, President and CEO of LFB, stated “This investment is a demonstration of our continuing commitment to the GTC transgenic technology platform and our joint programs, including Factor VIIa. I would also like to extend my sincere thanks to Geoff Cox and the other departing GTC employees for all of their efforts on behalf of the Company. LOL I am looking forward to a bright future at GTC under the leadership of GTC’s new CEO, Mr. William Heiden. I have known Bill for several years and have great confidence in his ability to successfully lead GTC into its next chapter.”
William Heiden is an experienced pharmaceutical and biotechnology executive. He served most recently as president and CEO of Elixir Pharmaceuticals, and prior to that as President and COO of Praecis (acquired by GSK), which he had joined in May 2002. From 1987 to 2002, he progressed through various positions of increasing responsibility at Schering Plough (now Merck), including Managing Director of a number of businesses in the U.S., Europe and Canada. Mr. Heiden holds an MBA from Cornell University’s Johnson Graduate School of Management, an MS degree from the University of Louvain and a Bachelors degree from the University of Florida. He serves on the Board of Directors of LFB Biotechnologies in Les Ulis, France, Conjuchem Biotechnologies, Inc. in Montreal, Canada (CJB.TO) and two private pharmaceutical companies.
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