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ok prop.lol.
Bermuda I got this from a seeking Alpha transcript
'Before moving off our net cash position, I will note that we will use approximately $25 million of our cash to clear remaining debt in the Chiasma organization and other similar costs. Chiasma will then have no debt and all the related costs will have been paid'
Now that's Amryt's cash not Chiasma's cash (I don't know what happened to Chiasma's cash,they must have had other legacy debt)
Tro, Stop following me ;-)
and on the aquisition
https://www.proactiveinvestors.co.uk/companies/news/957085/amryt-reports-record-2q-results-and-raises-full-year-guidance-as-momentum-continues-to-build-957085.html
True..OK
Bronxville,
I don't think so, this is taken from the transaction overview section of the RNS announcing the planned acquisition:-
'Chiasma’s existing royalty interest financing agreement expected to be fully repaid on closing delivering a high margin unencumbered asset to Amryt’s portfolio'
- the key words being 'unencumbered asset'. HRP couldn't still expect royalties if all finance had been repaid.
https://www.investegate.co.uk/amryt-pharma-plc--amyt-/gnw/amryt-pharma-to-acquire-chiasma--inc.-to-further-strengthen-global-leadership-in-rare-and-orphan-diseases/20210505120000H2909/
So the question is does Amryt have to pay royalty payments to Healthcare Royalty Partners (HCR)..Sounds like it
https://www.reuters.com/article/brief-chiasma-enters-into-revenue-intere/brief-chiasma-enters-into-revenue-interest-financing-agreement-for-up-to-75-mln-with-healthcare-royalty-partners-idINFWN2BW0IQ
Haven't listened to the CC yet but this is from Chiasma's 10Q..Page 18
In April 2020, we entered into the Revenue Interest Financing Agreement with HCR whereby HCR will receive payments from us at a tiered percentage (the “Applicable Tiered Percentage”) of future net revenues of MYCAPSSA and any of our other future products, including worldwide net product sales and upfront payments and milestones received from third parties under license agreements (the “Revenue Interests”). Under the terms of the agreement, we received $25.0 million, less certain transaction expenses, from HCR in April 2020 and an additional $25.0 million in July 2020 following the FDA approval of MYCAPSSA. In September 2020 we received an additional $15.0 million upon meeting conditions related to commercial drug supply availability and first commercial sale of MYCAPSSA. We are also entitled to receive an additional $10.0 million in early 2022 subject to the achievement of a revenue milestone and customary closing conditions. In exchange for the total investment amount (“Investment Amount”) received, HCR will receive a tiered royalty starting in the low double digits on worldwide annual net revenues of MYCAPSSA and any other future products, subject to step-downs upon the achievement of certain annual revenues.
https://sec.report/Document/0001564590-21-023643/
Definitely seems to be $25m to clear 'remaining debt'. Can only assume the majority had already been repaid.
Have to listen to it later Bermuda but I'm sure it was over $100 million but had the cash on hand to cover it..
Good to hear the recent meeting with the FDA did not raise any issues - so it looks like the Filsuvez priority review is still on track
Bronxville,
Re. your 12.21, just listening to the webcast and pretty sure they confirmed that $25m has been spent clearing Chiasma's loan and that Chiasma is now debt free.
Marketwatch commentary
Amryt Pharma PLC on Friday logged a narrowed loss for the second quarter and raised its full-year revenue guidance.
The biopharmaceutical company, which is focused on novel treatments for rare diseases, booked a pretax loss of $6.6 million for the three months ended June 30, compared with a $21.3-million loss a year earlier.
Revenue rose 36% year-on-year and 30% quarter-on-quarter, to $62.8 million.
"These results demonstrate the positive momentum and strong growth we are experiencing across our business, supported by our exceptional team who during the quarter delivered several important commercial and regulatory successes," Chief Executive Joe Wiley said.
In addition, Amryt raised its full-year revenue guidance to $210 million-$215 million from the previous $205 million-$210 million, given the strong performance of the business so far this year.
Could investors be thinking that Amryt's earning per share might be under pressure while waiting for MYCAPSSA to gain traction?
"Chiasma's existing royalty interest financing agreement expected to be fully repaid on closing". I guess they have to write the cheque - and swallow the hefty repayment premium! From memory, Chiasma had a fair amount of cash when the merger was announced. Hopefully, they will add some color on the Amryt conf call.
Yep not too bad..
Still wondering about Chiasma's cash and what kind of deal Amryt will do with Chiasma's lender..
As we saw in the fine print if Chiasma is acquired full loan has to be paid in full..
Very good quarter - looks mainly due to a LATAM order. Cash has increased to $142m. If they carry on throwing off cash, I will feel happier about the debt.
Thanks onceaday.
As expected, Chiasma stockholders approved the merger..
https://ir.chiasma.com/node/9426/html
Chiasma is due to approve the transaction on Tuesday. Once the new shares are issued, the divergent arbitrage will cease. That, together with the Amryt results next Friday will push the SP north....JMHO.
I think Amryt's figures next week will be good. The Aegerion fine has been paid off, so that's a few million to the bottom line and will sweeten the quarter-on-quarter comparisons....which the markets should like....as they focus on the future of the merged companies and not just the transaction.
I wonder will they make reference to Mycapssa's sales. Hopefully, they are growing strongly now and generating cash.
In the short term it's about generating cash, reducing debt and getting the merged balance sheet under control.......and then Oleogel. This company has a stellar future ahead of it IMHO.
Yep even though the market cap of Amryt has gone up 10 fold since 2016 original investor at the 24p level haven't made much here..the Aegerion buyout was based on debt restructure and moved over to Amryt..
I still have my CVR's which will sweeten it up when Filsuvez gets the FDA nod hopefully..
I guess we will have to wait to see what Mr Wiley has to say next Friday. Hopefull he is feeling the heat :-)
I think it's underperforming because of the debt structure..
Also they are acquiring Chiasma whose books are very messy as well.
It's pretty clear that Amryt will be reducing management headcount once the Chiasma deal closes - the whole rationale for the merger is to make savings in the combined operations. I assume not all the losses will be from the Chiasma team and some Amryt execs will have been lining up other contingency opportunities, I suspect.
Based on the fall in Amryt's SP, US investors were not overly impressed by the terms of the deal. However, there has been a more general decline in pharma of late so It's not entirely down to Amryt's prospects. I would imagine that once the deal closes next week investors will start to look forward. August is generally a bad month for small caps but the pdufa date for Oleogel-S10 will likely cause more interest (and buying) as we go into September..