NOVATO, Calif., March 30 /PRNewswire-FirstCall/ -- BioMarin Pharmaceutical Inc. announced today that it closed the sale of $172,500,000 aggregate principal amount of its 2.50% Senior Subordinated Convertible Notes due 2013 (including $22,500,000 aggregate principal amount of Notes purchased by the underwriter pursuant to its over-allotment option) and the sale of 10,350,000 shares of its common stock (including 1,350,000 shares purchased by the underwriters pursuant to their over-allotment option).
The maturity date of the Notes is March 29, 2013. Holders of the Notes may convert, at any time before maturity, any outstanding Notes into shares of the Company's common stock at an initial conversion rate of 60.3318 shares per $1,000 principal amount of the Notes, which represents a conversion price of approximately $16.58 per share, subject to adjustment under certain circumstances.
The Company has received approximately $167.1 million from the sale of the Notes and approximately $127.6 million from the sale of the common shares, in each case after deducting the underwriting discount and estimated offering expenses. The Company intends to use the net proceeds of the offerings for the commercialization of its products; additional clinical trials of Phenoptin(TM) (sapropterin dihydrochloride), Phenylase(TM) (phenylalanine ammonia lyase) and Vibrilase(TM) (vibriolysin); preclinical studies and clinical trials for its other product candidates; potential licenses and acquisitions of complementary technologies, products and companies; general corporate purposes, including acquisition costs related to the purchase of its facility located at 46 Galli Drive for which it is currently under contract; and working capital. The Company may also use a portion of the proceeds of the offerings to purchase some or all of its outstanding 3.50% Convertible Subordinated Notes due 2008 pursuant to the redemption provisions of the indenture governing such notes or in one or more privately negotiated transactions from time to time.
Merrill Lynch & Co. acted as sole book-running manager of each of the public offerings. Cowen & Co., Leerink Swann, Pacific Growth Equities, and Rodman & Renshaw acted as co-managers of the common stock offering.
A shelf registration statement relating to these securities has been filed with the Securities and Exchange Commission and has become effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About BioMarin
BioMarin develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. The company's product portfolio is comprised of two approved products and multiple clinical and preclinical product candidates. Approved products include Naglazyme(TM) (galsulfase) for mucopolysaccharidosis VI (MPS VI), a product wholly developed and commercialized by BioMarin, and Aldurazyme(R) (laronidase) for mucopolysaccharidosis I (MPS I), a product which BioMarin developed through a 50/50 joint venture with Genzyme Corporation. Additionally, BioMarin has rights to receive payments and royalties related to Orapred(R) (prednisolone sodium phosphate oral solution). Investigational product candidates include Phenoptin(TM) (sapropterin dihydrochloride), a Phase 3 product candidate for the treatment of phenylketonuria (PKU).
Forward-Looking Statement
This press release contains certain "forward-looking" statements as that term is defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans, objectives and future events. BioMarin Pharmaceutical intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements include statements relating to the use of proceeds from these offerings. These statements are based on the current expectations of the management of BioMarin Pharmaceutical as of the date of this press release and are subject to risks, uncertainties, changes in circumstances, assumptions and other factors that may cause the actual results of BioMarin Pharmaceutical to be materially different from those reflected in its forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, among others, market risks. These and other risks are described in greater detail in BioMarin Pharmaceutical's filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2005, as amended, and its Registration Statement on Form S-3 filed with the SEC on March 20, 2006. Given these uncertainties, you should not place undue reliance on these forward-looking statements. BioMarin Pharmaceutical assumes no obligation to update its forward-looking statements, except as required by law.
NOTE: Aldurazyme(R) is a registered trademark of BioMarin/Genzyme LLC.
Orapred(R) is a registered trademark of Medicis Pediatrics, Inc. and is used under license.
Contacts:
Investors Media
Joshua A. Grass Susan Ferris
Director, Senior Manager,
Business Development & Finance Corporate Communications
BioMarin Pharmaceutical Inc. BioMarin Pharmaceutical Inc.
415.506.6777 415.506.6701
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