Thursday, October 30, 2008

Dyax does stock placement deal worth up to $50M

By Mass High Tech Staff

Biotechnology company Dyax Corp. has entered into a financing deal that could have it sell up to $50 million of its common stock to Israeli investment firm Azimuth Opportunity Ltd. over an 18-month period.  The shares that could be sold by Dyax under this deal have been registered under a shelf registration statement approved by the U.S. Securities and Exchange Commission on Jan. 7, 2008.

Cambridge-based Dyax says it is not obligated to issue any shares to Azimuth under the $50 million facility and can enter into other equity and debt financing deals. Any shares sold to Azimuth would be priced at a small discount to the volume weighted average price of Dyax’s common stock over a preceding period of trading days, according to officials.

According to George Migausky, CFO at Dyax, any funds received from a stock sale to Azimuth would be used for growing the company and advancing its drug candidates, including further development of its lead compound DX-88.

DX-88 (ecallantide) is a recombinant small protein that is being evaluated for its therapeutic potential in two separate indications — the treatment of hereditary angioedema and the prevention of blood loss during on-pump cardiothoracic surgery through its partner Cubist Pharmaceuticals Inc.

Last week, Dyax announced the appointment of Gustav A. Christensen as president and CEO, replacing Henry E. Blair, who plans to retire and continue serving as chairman of the board. The transition becomes official on January 1, 2009.

Christensen has served as executive vice president and chief business officer since April 2007, during which time he had a hand in business development and licensing. In total, he has worked 25 years in the biotechnology sector.

Dyax reported a 2007 net loss of $56.3 million on revenue of $26.1 million. It employs a total of 177 workers.