GTC Biotherapeutics, Inc. (“GTC”, NASDAQ: GTCB) announced that it has entered into an agreement with its strategic partner, LFB Biotechnologies (Les Ulis, France), pursuant to which LFB has agreed to provide $7 million of new loan financing to GTC. The financing will be in the form of a 4%, 36-month secured term loan with a single payment of principle and interest at maturity. The transaction is expected to close on February 24, 2009 and is subject to customary closing conditions.
“This provides valuable support to GTC as we progress our FVIIa program into the clinic and advance our partnering efforts for our portfolio.”
“This loan arrangement is a further important demonstration of LFB’s continuing commitment to the GTC transgenic technology platform and the portfolios of products under development,” said Geoffrey Cox, Ph.D., Chairman, President and CEO of GTC Biotherapeutics. “This provides valuable support to GTC as we progress our FVIIa program into the clinic and advance our partnering efforts for our portfolio.”
“LFB is encouraged by the continuing progress in our collaboration with GTC and the planned advancement of FVIIa into the clinic in the second quarter of 2010,” stated Christian Béchon, President and CEO of LFB. “We believe that this funding will help sustain the progress for the key strategic programs in our transgenic portfolio, and confirm our long term commitment in the Company vis-a-vis new partners. We believe that GTC has been successful in prioritizing the most valuable projects and in reducing costs, and that the Company is now in a stronger position to succeed.”
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