Amarin has entered into a definitive agreement with several existing and new institutional and accredited investors for a USD70m private placement.
The private placement of units for USD70m consists of USD66.4m in cash proceeds and USD3.6m from the conversion of convertible bridge notes.
The financing was led by existing investor, Fountain Healthcare Partners, on behalf of funds affiliated with other existing investors Sofinnova Ventures, Orbimed Advisors and Longitude Capital. The new investor group was led by funds affiliated with Abingworth and included APG Asset Management, Great Point Partners, Tavistock Life Sciences and RA Capital.
In consideration for the USD66.4m received in cash, Amarin will issue 66.4 million units. Each unit has a purchase price of USD1.00 and consists of one American Depositary Share and a warrant to purchase 0.50 of an ADS. The warrants will have a five year term and an exercise price of USD1.50 per ADS.
In consideration for the conversion of USD3.6m principal amount of convertible bridge notes, Amarin will issue 4.0 million units. In accordance with the terms of the conversion of the bridge notes, each unit has a purchase price of USD0.90 and consists of one ADS and a warrant to purchase 0.50 of an ADS. The warrants will also have a five year term and an exercise price of USD1.50 per ADS.
The company intends to use the net proceeds from this financing to progress the company’s two phase 3 clinical trials with AMR101 in patients with very high triglyceride levels and mixed dyslipidemia through to an NDA filing. The funding will also be used for the retirement of USD1.9m in bridge financing and for general corporate purposes.
In conjunction with the placement, Thomas Lynch, chairman and chief executive officer of Amarin, has decided he will step down as chief executive and will continue as chairman. Dr. Declan Doogan, Amarin’s head of research and development, has agreed to assume the role of interim chief executive.
Lynch, who has served as Amarin’s chairman since 2000, says: “I became chief executive of Amarin two years ago in order to reposition the company to take advantage of the multi-billion dollar cardiovascular opportunity represented by AMR101 and to ensure that we had the financial underpinnings to bring this program to fruition. Over the past 12 months, we have significantly de-risked the phase 3 programme with two special protocol assessment agreements with the US Food and Drug Administration and now, with the announcement of today’s financing, the programme is funded through NDA filing. It is now my intention to step down as chief executive on closing. On behalf of Amarin’s board of directors I would like to wish Dr. Doogan every success in the execution of the phase 3 programme.”
Dr. Manus Rogan of Fountain Healthcare Partners and Dr. Joseph Anderson of Abingworth will join Amarin’s board of directors.
The board intends to appoint two additional independent directors post closing. Dr. John Climax, Dr. William Mason and Mr. Anthony Russell-Roberts are retiring from the board on closing of this financing.
