Protalix BioTherapeutics, Inc. (PLX - Free Report) recently completed a private placement of its convertible notes worth $69 million. The offering saw full exercise of over-allotment option of $9 million granted to the initial purchaser.
The convertible notes will mature on Sep 15, 2018 and carry an annual interest rate of 4.5% to be paid semi-annually. The Notes carry an initial conversion rate of 173.6593 shares of common stock per $1,000 principal amount of Notes which is around $5.76 per share.
Net proceeds were around $66.8 million. The offering was made to qualified institutional buyers.
Protalix intends to use the funds for the development of its pipeline, enhancement of manufacturing capacity and general corporate purposes.
Protalix is dedicated to develop and commercialize proprietary, biobetter or biosimilar versions of recombinant therapeutic proteins using its proprietary ProCellEx protein expression system.
Protalix has one approved product, Elelyso/Uplyso, for the treatment of Gaucher disease in its portfolio. Protalix has a worldwide commercialization partnership (except Brazil and Israel) with Pfizer Inc. (PFE - Free Report) for the product.
We note that Protalix has several candidates in its pipeline which include PRX-102 (phase I/II - Fabry disease) and PRX-112 (phase I - Gaucher disease).
Furthermore, the company revealed three new compounds, PRX-106 (immune mediated disorders), PRX-110 (cystic fibrosis) and PRX-107 (emphysema) in Jun 2013.
Protalix carries a Zacks Rank #4 (Sell). Currently, companies which look attractive include Gilead Sciences Inc. (GILD - Free Report) and Jazz Pharmaceuticals Public Limited Company (JAZZ - Free Report) with a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy), respectively.