TESARO Secures $500 Million Non-Dilutive Term Loan Financing
November 21 2017 - 8:00AM
TESARO, Inc. (NASDAQ:TSRO), an oncology focused biopharmaceutical
company, announced today that it has entered into a definitive term
loan agreement with BIOPHARMA CREDIT PLC and BIOPHARMA CREDIT
INVESTMENTS IV SUB LP, investment funds managed by Pharmakon
Advisors, LP. The loan facility provides TESARO with up to
$500 million of borrowing capacity available in two tranches.
The first $300 million is expected to be drawn at an initial
closing in early December 2017, and an additional tranche of up to
$200 million is available for draw at TESARO’s option until
December 20, 2018. The loans will mature in December
2024. Additional information on the loan agreement will be
filed with the U.S. Securities and Exchange Commission as a Current
Report on Form 8-K.
“This non-dilutive debt facility provides TESARO
sufficient funding with favorable terms as we enter into a period
of expected substantial revenue generation and continue to execute
on our mission of providing transformative therapies to people
facing cancer,” said Lonnie Moulder, CEO of TESARO. “We plan
to use the proceeds from the financing to strengthen our leading
PARP inhibitor franchise in ovarian cancer, further expand the
development of ZEJULA® in other tumor types in order to help
realize its full potential, and rapidly advance our robust
immuno-oncology portfolio using combination-based
approaches.”
“We are pleased to partner with TESARO in this
transaction,” said Pedro Gonzalez de Cosio, CEO of Pharmakon
Advisors, LP. “We believe that TESARO is well on its way to
becoming an oncology leader with an excellent management team,
portfolio of commercial products with blockbuster potential in
their current indications, and an exciting clinical development
program that could one day offer patients additional indications
for niraparib as well as new immuno-oncology therapies.”
About TESAROTESARO is an
oncology-focused biopharmaceutical company devoted to providing
transformative therapies to people bravely facing cancer. For more
information, visit www.tesarobio.com and follow us on Twitter and
LinkedIn.
About BIOPHARMA CREDIT and Pharmakon
AdvisorsPharmakon Advisors, LP is the investment manager
of the BioPharma Credit funds. Established in 2009, Pharmakon has
raised a total of US$ 2.4 billion, including the $762 million IPO
of BioPharma Credit PLC in the London Stock Exchange in March of
2017, and has invested US$ 2.0 billion across 25 different
financing transactions for companies in the life sciences.
Pharmakon is affiliated with Royalty Pharma, the leading investor
in biopharmaceutical royalties, with US$ 17 billion in assets and a
20-year track record.
Forward Looking Statements To
the extent that statements contained in this press release are not
descriptions of historical facts regarding TESARO, they are
forward-looking statements reflecting the current beliefs and
expectations of management made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Words such as "may," "will," "expect," "anticipate," "estimate,"
"intend," and similar expressions (as well as other words or
expressions referencing future events, conditions, or
circumstances) are intended to identify forward-looking statements.
Examples of forward-looking statements contained in this press
release include, among others, statements regarding the
availability and sufficiency of the funds from the facility, the
use of proceeds, expected future revenue generation, the commercial
potential for our products, plans with respect to our PARP
inhibitor franchise, plans to expand the label for ZEJULA with
additional indications, and plans to advance our immuno-oncology
development programs. Forward-looking statements in this release
involve substantial risks and uncertainties that could cause our
research and pre-clinical development programs, clinical
development programs, future results, performance, or achievements
to differ significantly from those expressed or implied by the
forward-looking statements. Such risks and uncertainties include,
among others risks related to competition, the uncertainties
inherent in the execution and completion of clinical trials,
uncertainties surrounding the timing of availability of data from
clinical trials, uncertainties surrounding our ongoing discussions
with and potential actions by regulatory authorities, uncertainties
regarding regulatory approvals, including with respect to the
ultimate approval and indication for niraparib in Europe,
uncertainties regarding expected and unexpected expenditures, risks
related to manufacturing and supply, risks related to intellectual
property, and other matters that could affect the availability or
commercial potential of our products and drug candidates. TESARO
undertakes no obligation to update or revise any forward-looking
statements. For a further description of the risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to the business of the Company in general, see TESARO's
Annual Report on Form 10-K for the year ended December 31, 2016,
and Quarterly Report on Form 10-Q for the quarter ended September
30, 2017.
Global Media & Investor
Contact:Jennifer DavisVice President, Corporate
Communications & Investor Relations+1.781.325.1116 or
jdavis@tesarobio.com
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