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Protalix BioTherapeutics Announces Repayment of Outstanding Senior Secured Convertible Promissory Notes

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Protalix BioTherapeutics (NYSE American: PLX) has announced the full repayment of its 7.50% Senior Secured Convertible Promissory Notes, marking a significant milestone for the company. The repayment was financed entirely with available cash, resulting in Protalix becoming debt-free with no outstanding notes. This move has eliminated the potential equity overhang presented by the notes and strengthened the company's balance sheet.

CEO Dror Bashan highlighted that the company's financial discipline has led to a strong financial position, providing sufficient runway for planned ongoing operations. Protalix, a biopharmaceutical company specializing in recombinant therapeutic proteins produced by its proprietary ProCellEx® plant cell-based protein expression system, had previously relied on convertible notes for financing, with the total outstanding principal amount reaching $78.0 million at its peak.

Protalix BioTherapeutics (NYSE American: PLX) ha annunciato il rimborso completo delle sue Note Convertibili Garantite Senior al 7,50%, segnando un traguardo significativo per l'azienda. Il rimborso è stato finanziato interamente con liquidità disponibile, portando Protalix a diventare senza debiti con nessuna nota in sospeso. Questa mossa ha eliminato il potenziale sovraccarico di capitale rappresentato dalle note e ha rafforzato il bilancio dell'azienda.

Il CEO Dror Bashan ha sottolineato che la disciplina finanziaria dell'azienda ha comportato una posizione finanziaria solida, fornendo un adeguato margine per le operazioni pianificate in corso. Protalix, un'azienda biofarmaceutica specializzata in proteine terapeutiche ricombinanti prodotte dal suo sistema di espressione proteica vegetale ProCellEx®, aveva precedentemente fatto affidamento su note convertibili per il finanziamento, con l'importo totale del capitale in sospeso che ha raggiunto i 78,0 milioni di dollari al suo picco.

Protalix BioTherapeutics (NYSE American: PLX) ha anunciado el reembolso completo de sus Notas Promisorias Convertibles Garantizadas al 7.50%, marcando un hito significativo para la empresa. El reembolso fue financiado completamente con efectivo disponible, lo que llevó a Protalix a estar libre de deudas sin notas pendientes. Este movimiento ha eliminado la posible sobrecarga de capital presentada por las notas y ha fortalecido el balance de la compañía.

El CEO Dror Bashan destacó que la disciplina financiera de la empresa ha llevado a una posición financiera sólida, proporcionando el margen suficiente para las operaciones continuas planificadas. Protalix, una empresa biofarmacéutica especializada en proteínas terapéuticas recombinantes producidas por su sistema de expresión proteica basado en células vegetales ProCellEx®, había dependido anteriormente de las notas convertibles para financiarse, alcanzando un monto total de capital pendiente de $78.0 millones en su punto máximo.

프로탈릭스 바이오테라퓨틱스(Protalix BioTherapeutics)(NYSE American: PLX)는 7.50%의 Senior Secured Convertible Promissory Notes를 전액 상환했다고 발표했으며, 이는 회사에 중요한 이정표가 됩니다. 상환은 사용 가능한 현금으로 전액 조달되었으며, 이로 인해 프로탈릭스는 부채가 없는 상태가 되어 미지급적인 노트를 모두 없앴습니다. 이 조치는 노트에서 나타나는 잠재적인 자본 과부하를 제거하고 회사의 재무 상태를 강화했습니다.

CEO 드로르 바샨(Dror Bashan)은 회사의 재정 규율이 강력한 재무적 위치를 가져왔다고 강조하며, 계획된 계속 운영을 위한 충분한 여유를 제공하고 있다고 밝혔습니다. 프로탈릭스는 자체 특허의 ProCellEx® 식물 세포 기반 단백질 발현 시스템을 통해 생산된 재조합 치료 단백질을 전문으로 하는 생물 제약 회사로, 과거에는 금융을 위해 전환 가능한 노트에 의존해 있었으며, 총 미지급 원금은 절정 시 $78.0 백만에 달했습니다.

Protalix BioTherapeutics (NYSE American: PLX) a annoncé le remboursement complet de ses Obligations Convertibles Garanties Senior à 7,50 %, marquant un jalon significatif pour l'entreprise. Le remboursement a été entièrement financé par des liquidités disponibles, ce qui a permis à Protalix de devenir sans dette et de ne plus avoir de billets en circulation. Ce mouvement a éliminé le potentiel de surcroît de capitaux représenté par les billets, renforçant ainsi le bilan de l'entreprise.

Le CEO Dror Bashan a souligné que la discipline financière de l'entreprise a conduit à une position financière solide, offrant une marge suffisante pour les opérations continues prévues. Protalix, une entreprise biopharmaceutique spécialisée dans les protéines thérapeutiques recombinantes produites par son système d'expression de protéines à base de cellules végétales ProCellEx®, avait auparavant compté sur des obligations convertibles pour se financer, le montant total du capital restant dû atteignant 78,0 millions de dollars à son apogée.

Protalix BioTherapeutics (NYSE American: PLX) hat die vollständige Rückzahlung seiner 7,50% Senior Secured Convertible Promissory Notes angekündigt, was einen bedeutenden Meilenstein für das Unternehmen darstellt. Die Rückzahlung wurde vollständig mit verfügbaren Mitteln finanziert, was dazu führte, dass Protalix schuldenfrei wurde und keine ausstehenden Noten mehr hat. Dieser Schritt hat das potenzielle Eigenkapital, das durch die Noten verursacht wurde, beseitigt und die Bilanz des Unternehmens gestärkt.

CEO Dror Bashan hob hervor, dass die finanzielle Disziplin des Unternehmens zu einer starken finanziellen Position geführt hat, die ausreichend Spielraum für die geplanten laufenden Operationen bietet. Protalix, ein biopharmazeutisches Unternehmen, das sich auf rekombinante therapeutische Proteine spezialisiert hat, die durch sein proprietäres ProCellEx® Pflanzenzell-basiertes Protein-Expressionssystem produziert werden, hatte früher auf wandelbare Anleihen zur Finanzierung zurückgegriffen, wobei der insgesamt ausstehende Nennbetrag zu seinem Höhepunkt 78,0 Millionen Dollar betrug.

Positive
  • Company has become debt-free by repaying all outstanding convertible notes
  • Elimination of potential equity overhang from convertible notes
  • Strong balance sheet sufficient to support planned ongoing operations
  • Repayment financed entirely with available cash, indicating good liquidity
Negative
  • None.

Insights

Protalix's full repayment of its $78.0 million convertible notes marks a significant financial milestone. This move eliminates the company's debt and removes the potential dilution risk for shareholders. The ability to repay using available cash demonstrates strong liquidity and prudent financial management.

The debt-free status strengthens Protalix's balance sheet, potentially improving its financial flexibility and reducing interest expenses. This could lead to improved profitability and cash flow in the future. However, investors should monitor the company's cash burn rate and revenue growth to ensure long-term sustainability without debt financing.

Overall, this development is positive for Protalix, as it reduces financial risk and may enhance the company's attractiveness to investors and potential partners in the biopharmaceutical industry.

Protalix's debt clearance is a positive indicator for its ProCellEx® platform's potential. As a biopharmaceutical company focused on recombinant therapeutic proteins, maintaining a strong financial position is important for ongoing R&D and commercialization efforts.

The debt-free status could provide Protalix with more flexibility to invest in its pipeline and potentially accelerate the development of new therapies. This financial stability may also make the company more attractive for potential partnerships or collaborations within the industry.

However, it's important to note that while the improved balance sheet is beneficial, the true value driver for Protalix will be the success of its product pipeline and the commercial performance of any approved therapies. Investors should closely monitor clinical trial results and regulatory milestones for a comprehensive assessment of the company's prospects.

Company is debt-free with no outstanding notes

Balance sheet provides sufficient runway for ongoing operations

CARMIEL, Israel, Sept. 3, 2024 /PRNewswire/ -- Protalix BioTherapeutics, Inc. (NYSE American: PLX), a biopharmaceutical company focused on the development, production and commercialization of recombinant therapeutic proteins produced by its proprietary ProCellEx® plant cell-based protein expression system, today announced that it has repaid in full all of the outstanding principal and interest payable under its 7.50% Senior Secured Convertible Promissory Notes. The repayment of the convertible notes at maturity was financed entirely with available cash.

Protalix BioTherapeutics Logo

"Repayment of our convertible notes is a significant milestone for our company as we are now debt-free and have eliminated the potential equity overhang presented by the notes," said Dror Bashan, Protalix's President and Chief Executive Officer. "Over the last decade, our company has been financed in part through the issuance of convertible notes, the total outstanding principal amount of which reached $78.0 million at its highest. Given this repayment, our financial discipline has resulted in a strong balance sheet that is sufficient to support our planned ongoing operations."

About Protalix BioTherapeutics, Inc.

Protalix is a biopharmaceutical company focused on the development and commercialization of recombinant therapeutic proteins expressed through its proprietary plant cell-based expression system, ProCellEx. It is the first company to gain U.S. Food and Drug Administration (FDA) approval of a protein produced through plant cell-based in suspension expression system. This unique expression system represents a new method for developing recombinant proteins in an industrial-scale manner. Protalix has licensed to Pfizer Inc. the worldwide development and commercialization rights to taliglucerase alfa for the treatment of Gaucher disease, Protalix's first product manufactured through ProCellEx, excluding in Brazil, where Protalix retains full rights. Protalix's second product, Elfabrio®, was approved by both the FDA and the European Medicines Agency (EMA) in May 2023.

Protalix has partnered with Chiesi Farmaceutici S.p.A. for the global development and commercialization of Elfabrio. Protalix's development pipeline consists of proprietary versions of recombinant therapeutic proteins that target established pharmaceutical markets, including the following product candidates: PRX–115, a plant cell-expressed recombinant PEGylated uricase for the treatment of uncontrolled gout; PRX–119, a plant cell-expressed long action DNase I for the treatment of NETs-related diseases; and others.

Forward-Looking Statements

To the extent that statements in this press release are not strictly historical, all such statements are forward-looking, and are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. The terms "expect," "anticipate," "believe," "estimate," "project," "may," "plan," "will," "would," "should" and "intend," and other words or phrases of similar import are intended to identify forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes. Drug discovery and development involve a high degree of risk and the final results of a clinical trial may be different than the preliminary findings for the clinical trial. Factors that might cause material differences include, among others: risks related to the commercialization of Elfabrio® (pegunigalsidase alfa-iwxj), our approved product for the treatment of adult patients with Fabry disease; risks relating to Elfabrio's market acceptance, competition, reimbursement and regulatory actions, including as a result of the boxed warning contained in the FDA approval received for the product; the possible disruption of our operations due to the war declared by Israel's security cabinet against the Hamas terrorist organization located in the Gaza Strip, the military campaign against the Hezbollah and other terrorist activities and armed conflict, including as a result of the disruption of the operations of certain regulatory authorities and of certain of our suppliers, collaborative partners, licensees, clinical trial sites, distributors and customers; failure or delay in the commencement or completion of our preclinical studies and clinical trials, which may be caused by several factors, including: slower than expected rates of patient recruitment; unforeseen safety issues; determination of dosing issues; lack of effectiveness during clinical trials; inability to satisfactorily demonstrate non-inferiority to approved therapies; inability or unwillingness of medical investigators and institutional review boards to follow our clinical protocols; inability to monitor patients adequately during or after treatment; and/or lack of sufficient funding to finance our clinical trials; delays in the approval or potential rejection of any applications we file with the FDA, EMA or other health regulatory authorities for our other product candidates, and other risks relating to the review process; risks associated with global conditions and developments such as supply chain challenges, the inflationary environment and tight labor market, and instability in the banking industry, which may adversely impact our business, operations and ability to raise additional financing if and as required and on terms acceptable to us;  the risk that the results of our clinical trials will not support the applicable claims of safety or efficacy and that our product candidates will not have the desired effects or will be associated with undesirable side effects or other unexpected characteristics; risks relating to our ability to manage our relationship with our collaborators, distributors or partners, including, but not limited to, Pfizer Inc. and Chiesi Farmaceutici S.p.A.; risks related to the amount and sufficiency of our cash and cash equivalents and short-term bank deposits; our dependence on performance by third-party providers of services and supplies, including without limitation, clinical trial services; the inherent risks and uncertainties in developing drug platforms and products of the type we are developing; the impact of development of competing therapies and/or technologies by other companies; potential product liability risks, and risks of securing adequate levels of related insurance coverage; the possibility of infringing a third-party's patents or other intellectual property rights and the uncertainty of obtaining patents covering our products and processes and successfully enforcing our intellectual property rights against third-parties; and risks relating to changes in healthcare laws, rules and regulations in the United States or elsewhere; and other factors described in our filings with the U.S. Securities and Exchange Commission. The statements in this press release are valid only as of the date hereof and we disclaim any obligation to update this information, except as may be required by law.

Investor Contact

Mike Moyer, Managing Director
LifeSci Advisors
+1-617-308-4306
mmoyer@lifesciadvisors.com

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SOURCE Protalix BioTherapeutics, Inc.

FAQ

What did Protalix BioTherapeutics (PLX) announce regarding its debt?

Protalix BioTherapeutics (PLX) announced the full repayment of its 7.50% Senior Secured Convertible Promissory Notes, making the company debt-free with no outstanding notes.

How did Protalix BioTherapeutics (PLX) finance the repayment of its convertible notes?

Protalix BioTherapeutics (PLX) financed the repayment of its convertible notes entirely with available cash.

What is the significance of Protalix BioTherapeutics (PLX) repaying its convertible notes?

The repayment eliminates the potential equity overhang presented by the notes and strengthens the company's balance sheet, providing sufficient runway for planned ongoing operations.

What was the highest total outstanding principal amount of Protalix BioTherapeutics' (PLX) convertible notes?

The total outstanding principal amount of Protalix BioTherapeutics' (PLX) convertible notes reached $78.0 million at its highest.

Protalix BioTherapeutics, Inc.

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