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(Alliance News) - Shield Therapeutics PLC on Tuesday said it plans a share offer to raise fresh funds, while it also has agreed a sales collaboration with Viatris Inc in the US for the oral therapy Accrufer.
The Gateshead, England-based commercial-stage pharmaceutical firm said it plans to raise GBP18.6 million in total, including an aggregate GBP14.7 million from placing and subscription at a price of 6.00 pence, alongside raising a further GBP3.9 million via an open offer to shareholders of 64.3 million shares.
It noted the issue price represented an 11% discount to the share closing price on Monday. Shares in Shield Therapeutics traded down 2.2% at 6.60p each in London on Tuesday morning.
Shield Therapeutics also announced a USD10 million extension of its existing convertible debt facility with AOP Health Management AG. The facility will be interest-free for the first 12 months, while Shield Therapeutics also agreed to grant AOP warrants to subscribe for 5.1 million new shares at a price of 6.75p.
AOP indicated it intends to subscribe to 57.1 million subscription shares at the 6.00p price, according to Shield Therapeutics. A number of Shield Therapeutics directors, shareholder employees and option holders also indicated they intend to subscribe for an aggregate of 11.5 million shares, it said.
Shield Therapeutics also said it signed a sales agreement with healthcare company Viatris to collaborate on driving US sales of Accrufer, an oral therapy for adults with iron deficiency, with or without anaemia.
Shield Therapeutics said the multi-year co-commercialisation deal is an exclusive agreement.
Viatris agreed to pay Shield Therapeutics USD5 million within five business days of Tuesday's announcement. Shield will be eligible to receive sales milestones of up to USD30 million, linked to annual net sales ranging from USD100 million to USD250 million.
The US oral iron market is reportedly an estimated USD2 billion market opportunity, while Accrufer is the only US Food & Drug Administration-approved oral iron to treat iron deficiency, with or without anaemia.
Shield Therapeutics said the new collaboration expanded Accrufer's resources and commercial footprint, aspiring for it to be the oral iron of choice in the US market.
"Viatris's well established commercial infrastructure including strong prescriber relationships, best-in-class digital marketing and direct to patient capabilities, and extensive market access experience makes them an ideal partner for Shield and Accrufer," said Greg Madison, chief executive officer at Shield Therapeutics.
Jose Cotarelo, head of North America at Viatris, added: "This collaboration is a great opportunity to leverage our commercial capabilities while furthering Viatris's mission to empower people worldwide to live healthier at every stage of life."
Shield and Viatris will share revenue and marketing expenses, following an agreed split with Shield retaining a slightly higher percentage. Both companies will pay for their own respective sales force and related selling costs.
By Greg Rosenvinge, Alliance News reporter
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