Catalyst Issues Stock to BioMarin, Celldex Reports Positive Results: Healthcare Business Update
In a Tuesday release, Catalyst Pharmaceutical Partners (NASDAQ:CPRX) reported that it has issued 6,666,667 shares of its authorized but unissued common stock to BioMarin Pharmaceutical (NASDAQ:BMRN) upon the automatic conversion of the $5 million loan that Catalyst received from BioMarin on October 26th, in regards to Catalyst’s licensing the North American rights to Firdapse from BioMarin. The shares were issued at a conversion price of 75 cents per share through the terms of that certain Convertible Promissory Note and Note Purchase Agreement, dated October 26th, between Catalyst and BioMarin. Following the issuance of the Shares, Catalyst holds 41,420,687 shares of outstanding common stock and BioMarin owns about 16.1 percent of Catalyst’s outstanding common stock.
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Celldex Therapeutics (NASDAQ:CLDX) reports in a Tuesday release positive results from a Phase 1 multi-dose evaluation of CDX-301 (FMS-like tyrosine kinase-3 ligand), showing that CDX-301 was well-tolerated and can safely and effectively mobilize hematopoietic cell populations in healthy volunteers. Further, the data support future development of CDX-301 in a number of indications, among which include hematopoietic stem cell transplant and cancer immunotherapy.
On Tuesday LifeCare Holdings and affiliates, which is a hospital chain backed by the The Carlyle Group (NYSE:CG), filed for Chapter 11 bankruptcy protection in Wilmington, Delaware, where it reported $484.2 million in total long-term debt obligations. Lifecare operates 27 hospitals in 10 states. Meanwhile, a group of the company’s existing lenders have teamed up to bid on it, which LifeCare hopes to test at a bankruptcy court-overseen auction process; the lenders have offered to forgive debt in return for the assets, which LifeCare said is the best offer it’s received for its assets thus far. The firm also said that such a sale would permit to continue serving patients and save more than 4,500 jobs.