The largest PIPE transaction of the year 2007 on Euronext
PARIS – August 29, 2007 - Bryan, Garnier & Co (“Bryan Garnier”), the independent pan-European investment bank focused on growth companies, announced the closing of a €40 million capital raising of common stock for BioAlliance (Euronext : BIO) a French-based specialty pharmaceutical company focused on the development and commercialization of therapeutics targeting cancer, HIV and opportunistic infections. Bryan Garnier acted as global coordinator and sole bookrunner on this transaction.
The BioAlliance offering is the largest PIPE (Private Investment in Public Equity) transaction of the year on Euronext. The offering consisted of common shares without rights attached and was reserved for 32 international qualified investment funds investing in the pharmaceutical and biotech sector.
The 3,131,020 new shares issued shares at a price of € 12.79 represent 25.2% of the outstanding share capital of BioAlliance post operation.
The success of this private placement significantly reflects the strong confidence of investors in BioAlliance’s strategy as well as their endorsement of the company’s product portfolio. BioAlliance is at the forefront of the emerging Specialty Pharmas in Europe with its leading product Loramyc® to be launched on the French market next September, and a broad pipeline with 3 products in Phase III.
BioAlliance intends to use the proceeds to accelerate the transition to clinical development stage of their promising new drug candidates as well as to develop more drugs based on their validated Lauriad ® adhesive strategy. The capital injection also aims at financing targeted acquisitions of products in the HIV/ cancer fields.
This transaction is the second that Bryan Garnier led on BioAlliance, after the €30 m initial public offering of common stock by the company in December 2005.
This operation follows a string of Equity Capital Market offerings that Bryan Garnier recently led in both the biotech & high tech sectors. Bryan Garnier was especially lead manager and sole book runner for the Transgene € 100 million follow-on offering in June 2007. Other operations include Innate Pharma, Risc Group, Parrot and Netbooster.
With this private placement, Bryan Garnier strengthens its number one position (based on data provided by Thomson Financials) as underwriter of ECM transactions for small & mid-size Biotechs & Pharmaceuticals on the Euronext market.
Commenting on the transaction, Francois Thomas, Senior Advisor and Head of Bryan Garnier’s Healthcare Practice said, “BioAlliance Specialty Pharma business model is based on a unique track record of cost effective development. The company’s strategic focus on niche markets in the opportunistic infections / cancer fields offers outstanding prospects of growth. The recent commercialization agreements for Loramyc® with Spepharm in Europe and with Par Pharmaceutical in the United States demonstrate the attractiveness of the company portfolio.
This major operation along with recent closings announced by Bryan Garnier, such as the Transgene follow-on offering, confirms Bryan Garnier’s leading position in the healthcare sector.”
Dominique Costantini, CEO of BioAlliance, added, “We are particularly pleased by the success of this operation and we thank all the investors who expressed their confidence in our company. These funds will enable BioAlliance to significantly accelerate its growth through further development of its portfolio and product acquisitions to build shareholder value.
Bryan Garnier’s industry expertise, high level of commitment and broad access to institutional investors in Europe have been keys in the success of this capital increase. I trust that this latest financing will give a strong impulse to BioAlliance becoming a major Specialty Pharma in Europe.”
Olivier Garnier, Managing Director of Bryan Garnier concluded, “BioAlliance has been considered as a very attractive investment opportunity by a number of leading international institutional investors in the sector. The company has fully delivered on milestones, but has been undervalued since its IPO despite its strong fundamentals. BioAlliance now has not only significant resources to succeed in its development strategy, but also a more diversified shareholder base bringing broad support for the company’s long-term development.
This successful transaction demonstrates Bryan Garnier’s close relationships with reference investors and the ability of our experienced investment bankers to provide advice and deliver solutions to our clients.”