UniQure NV (NASDAQ:QURE) has moved fast and filed the paperwork for a follow to the $1 billion tie up with Bristol Myers Squibb Co (NYSE:BMY). The follow on deal is expected to be worth around $100 million.
UniQure is expected to get $108 million if the shares sell at the assumed offering price and over allotment is fully subscribed. The deal is calculated on the basis of buoyant prices of UniQure shares after the news of its partnership with Bristol. The shares of UniQue were jumped 47% higher due to the new of the Bristol deal.
The money from the higher share prices, totalling to about 150 million, might be used by UniQure to invest in the hemophilia B and other niche gene therapies. It seemed unlikely that UniQure would meet its targets after news of a possible regulatory setback sent UniQure shared down by about 10%.
The money is earmarked for various tasks out of which the most pressing is the development of Phase I/II hemophilia gene therapy. UniQure is developing the therapy with Chiesi, AMT-060. UniQure is also going head to head with other companies like Baxter International Inc. (NYSE:BAX) and Biogen Inc (NASDAQ:BIIB) in a bid to bring blood clotting disease treatment to the market.
The follow on offering should ensure that UniQure never lags behind its competitors due to lack of cash. UniqQure is also setting aside another tranche of the anticipated windfall for more clinical developments. There is also marketing approval application for Glybera, a lipoprotein lipase deficiency drug which has a $1.06 million price tag.
In related news, UniQure NV (NASDAQ:QURE) announced the pricing of its follow on public offering of 3,000,000 ordinary shares at a price of $29.50 per ordinary share. The offering is expected to net around $82.4 million after deducting the underwriting discounts and other estimated offering expenses.
Uniqure is also looking to acquire rights to certain products currently being developed by third parties.