THE ORPHAN ONCOLOGY INNOVATOR
DEFINITIVE MERGER PLAN
BETWEEN BIOALLIANCE PHARMA AND TOPOTARGET
COMBINED ENTITY TO BE NAMED ONXEO
– Onxeo expected to have a broader complementary pipeline of late-stage products addressing significant unmet medical needs –
– Topotarget shareholders will receive 2 new BioAlliance Pharma ordinary shares for every 27 Topotarget shares that they own, which implies approximately a 1/3 ownership for Topotarget shareholders and approximately a 2/3 ownership for BioAlliance Pharma shareholders –
– Shareholders to vote at extraordinary general meetings on June 27, 2014 for Topotarget and June 30, 2014 for BioAlliance Pharma –
PARIS, FRANCE AND COPENHAGEN, DENMARK – May 21, 2014 – BioAlliance Pharma SA (Euronext Paris: BIO), an innovative company specializing in the development of medicines for orphan oncology diseases, and Topotarget A/S (NASDAQ OMX: TOPO) a Danish biopharmaceutical company, today announced the signature of a definitive merger plan to create the combination of BioAlliance Pharma SA and Topotarget A/S to be operating under the new name, Onxeo, with the aim of becoming a global leader in orphan oncology. The merger agreement has been unanimously approved by the Boards of Directors of both companies.
The merger plan signed today confirmed the terms of the merger agreement announced on April 16, 2014, whereby the continuing entity will be BioAlliance Pharma and the exchange ratio of 2 newly issued shares in BioAlliance Pharma for every 27 Topotarget shares held, resulting in shareholders of BioAlliance Pharma holding approximately 2/3 and existing Topotarget shareholders 1/3 of BioAlliance Pharma, to be named Onxeo.
Highlights of the transaction
o Belinostat, which is under Priority Review by FDA with expected response date early August 2014. A potential approval would demonstrate its clinical potential and trigger a significant cash payment (USD25 million) from US partner company Spectrum Pharmaceuticals, as well as future double-digit royalties.
o Validive, for which results of Phase II studies in Europe and the USA are expected in Q4 2014.
o Livatag, currently in international Phase III studies and which recently received Fast Track designation by FDA.
o In addition to these well-advanced indications, other indications could be developed for the treatment of rare cancers.
Management and Corporate Governance following completion of the merger
Onxeo will be led by Judith Greciet, Chief Executive Officer of BioAlliance Pharma. Mr Patrick Langlois will continue in his role as Chairman of Onxeo. The Board of Directors of Onxeo will be strengthened by the arrival of Dr Bo Jesper Hansen, currently Chairman of Topotarget, and Mr Per Samuelsson, Partner in the HealthCap venture capital funds.
Judith Greciet, Chief Executive Officer of BioAlliance Pharma, said: “The finalization of the definitive terms of the merger is an important milestone in the merger with Topotarget, which will allow us to strengthen and diversify our position in rare cancers. With a promising portfolio, recognized expertise and greater critical mass, I am confident that Onxeo will rapidly become a major company in the field of orphan oncology treatments, thus realizing its potential to create value for shareholders and, most importantly, making available innovative therapeutic solutions to patients with urgent and unmet medical needs.”
Anders Vadsholt, Chief Executive Officer of Topotarget, said: “The positioning of BioAlliance Pharma, their late-stage assets and expertise makes them a perfect fit for Topotarget, allowing the acceleration of belinostat’s development in several new orphan oncology indications by leveraging both teams’ synergistic expertise. We are confident that this merger will deliver to our shareholders the best possible value and the opportunity to jointly shape a dynamic new player in the orphan oncology market.”
Definitive terms of the merger proposal
Share capital of BioAlliance before merger €5,170,748
BioAlliance outstanding shares before merger (par value of €0.25) 20,682,992
Share capital of Topotarget at the time of merger (i.e. after exercise of warrants) DKK 145,791,112
Topotarget outstanding shares at the time of merger (i.e. after exercise of warrants) (par value DKK 1.00) 145,791,112
Assets transferred €81,679,490
Liabilities transferred €2,952,294
Net assets transferred €78,727,196
Exchange ratio (number of BioAlliance shares to number of Topotarget shares) 2 for 27
Number of BioAlliance shares to be issued (with effective date on the Completion Date of the merger) (par value €0.25)
Share capital increase as a result of the merger €2,699,835
Merger premium €76,027,361
Share capital of BioAlliance after merger €7,870,583
On this basis, the merger will be submitted for approval by extraordinary general meetings of shareholders to be held respectively by Topotarget on June 27, 2014 and BioAlliance Pharma on June 30, 2014.
Acceleration of Topotarget warrants
Prior to the date of this announcement the Board of Directors of Topotarget has resolved and conducted an acceleration of the vesting and exercise of all equity warrants issued by Topotarget and has thereby allowed the holders of all equity warrants (including any warrants not yet vested) to exercise their warrants such accelerated vesting and exercise being conditional upon the approval of the merger by the general meetings of BioAlliance Pharma and Topotarget.
As of the date of this announcement, the warrant holders of Topotarget have exercised a total of 2,473,998 equity warrants (in the aggregate) and have paid the subscription amounts pertaining to such equity warrants to Nordea as escrow agent. Upon approval of the merger by the general meetings of BioAlliance Pharma and Topotarget, the warrants will be deemed to have been unconditionally exercised and the subscription amounts will be released by Nordea to Topotarget and the board of directors of Topotarget will procure the registration with the Danish Business Authority of (i) the exercise of the equity warrants, (ii) the issuance of new shares in Topotarget in exchange for such exercised equity warrants and (iii) the cancellation of all equity warrants in Topotarget which remain unexercised as of the date of this announcement.
May 22-27, 2014 Submission of definitive merger plan to French and Danish authorities
Registration of Document E by the AMF
Approval of merger prospectus from AMF and passport of merger prospectus to Denmark
Calling of the extraordinary general meetings
June 27, 2014 Extraordinary general meeting of Topotarget to approve merger
June 30, 2014 Extraordinary general meeting of BioAlliance Pharma to approve merger
July/August 2014 Completion of the merger
Centerview Partners and Nordea acted as financial advisors to BioAlliance Pharma in connection with the merger. Altana and Bech Bruun acted as legal counsel to BioAlliance Pharma. EY and Grant Thornton acted as BioAlliance Pharma’s advisors on auditing and accounting aspects, and Arsene Taxand and Bech-Bruun acted as advisors on tax aspects. Finally, Brunswick acted as PR advisor.
ABG Sundal Collier acted as financial advisor to Topotarget in connection with the merger.
Back Bay Life Science Advisors, acted as scientific advisor to Topotarget. Kromann Reumert, Mazanti and Dechert acted as legal counsel to Topotarget. PWC acted as Topotarget’s advisor on auditing, accounting and tax aspects. Finally, Impact Communications acted as PR advisor.
For further information, please contact
Anders Vadsholt, Chief Executive Officer
+45 28 98 90 55
Michael Steen-Knudsen – Impact Communications
+45 25 17 18 15
Judith Greciet, Chief Executive Officer
+33 1 45 58 76 00
Caroline Carmagnol – AlizéRP
+33 6 64 18 99 59