GTC Biotherapeutics, Inc. announced that it has entered into an agreement with its strategic partner, LFB Biotechnologies (Les Ulis, France), pursuant to which LFB has agreed to provide $7 million of new loan financing to GTC. The financing will be in the form of a 4 per cent, 36-month secured term loan with a single payment of principle and interest at maturity. The transaction is expected to close on February 24, 2010 and is subject to customary closing conditions.
“This loan arrangement is a further important demonstration of LFB’s continuing commitment to the GTC transgenic technology platform and the portfolios of products under development”, said Geoffrey Cox, Ph.D., chairman, president and CEO of GTC Biotherapeutics. “This provides valuable support to GTC as we progress our FVIIa programme into the clinic and advance our partnering efforts for our portfolio.”
“LFB is encouraged by the continuing progress in our collaboration with GTC and the planned advancement of FVIIa into the clinic in the second quarter of 2010”, stated Christian Béchon, president and CEO of LFB. “We believe that this funding will help sustain the progress for the key strategic programs in our transgenic portfolio, and confirm our long term commitment in the Company vis-a-vis new partners. We believe that GTC has been successful in prioritizing the most valuable projects and in reducing costs, and that the Company is now in a stronger position to succeed.”
GTC Biotherapeutics develops, supplies and commercializes therapeutic proteins produced through transgenic animal technology. ATryn, GTC’s recombinant human antithrombin, has been approved for use in the United States and Europe.
LFB Biotechnologies (a French société par actions simplifiée) is both a strategic shareholder in GTC and the strategic partner of GTC in their joint venture called LFB/GTC LLC. LFB is a biopharmaceutical group that develops, manufactures and markets medicinal products for the treatment of serious and often rare diseases in several major therapeutic fields, namely Hemostasis, Immunology and Intensive Care.