Actionable news
All posts from Actionable news
Actionable news in KERX: Keryx Biopharmaceuticals, Inc.,

Keryx Biopharmaceuticals Announces $125 Million Private Placement of Convertible Senior Notes With The Baupost Group, L.L.C.

Press Release


  • Keryx implements plan to significantly reduce its annual cash operating expenses, beginning in 2016
  • Increased cash position expected to take Auryxia(TM) (ferric citrate) franchise to cash flow positive

Keryx Biopharmaceuticals, Inc. KERX, +1.08% a biopharmaceutical company focused on bringing innovative therapies to market for people with renal disease, today announced that it has entered into an agreement to raise $125 million through the private placement of Convertible Senior Notes (the "Notes"), due 2020, with funds managed by The Baupost Group, L.L.C. With the additional capital, Keryx has a pro-forma cash position of approximately $225 million as of September 30, 2015. In conjunction with the financing, Keryx will increase the number of directors on its Board to eight, as Baupost will have the right to appoint a director to Keryx's Board by the end of 2015. Baupost will also appoint an observer to Keryx's board.

The company also announced the implementation of a cost reduction plan to re-align its operating expense structure. The plan is expected to significantly decrease the company's cash operating expenses, excluding cost of goods sold, in 2016 to between $87 million and $92 million. Keryx plans to provide further 2016 financial guidance in early 2016.

"We have a significant opportunity with Auryxia and, as we previously outlined, have adapted our strategy to improve the launch of Auryxia in the U.S., including the planned increase of our field-based sales force by approximately 50 percent," said Greg Madison, chief executive officer of Keryx. "We continue to be focused on critical activities to drive increased revenue from Auryxia and to advance our label expansion efforts, with data expected early in the second quarter of 2016 from our phase 3 trial in pre-dialysis patients with iron deficiency anemia."

"We recently completed a comprehensive review of our financial and business objectives and determined that we should strengthen our balance sheet and implement a...