OSI Pharma: $175MM in New Debt & More…
by Adam Rubenstein
Colorado Life Science Deal Flow
Perhaps not squarely on certain peoples radars in these parts OSI Pharmaceuticals (NASDAQ: OSIP) is sometimes not uttered in the same breath by some when referring to public CO companies, easy to do I suppose since corporate headquarters are actually located in Melville, NY however, a very significant campus is here in Boulder, housing both clinical and R&D functions. Why for the third year in a row, OSI Pharma’s Boulder office won an Award for Colorado's Best companies for working families. OSI Pharma placed 1st in 2006 and 2nd in 2005 in the medium-sized business category, and was named a 2007 Honorary Member of the Circle of Distinction for 2007.
Tomorrow OSI Pharma has a live webcast scheduled for 10:00am EST from the Stanford Group Healthcare Conference in Washington DC, listen (here). I’ll be interested to hear about their flagship product, Tarceva®, a small molecule tyrosine kinase inhibitor of the epidermal growth factor receptor used for second-line treatment of Non Small Cell Lung Cancer.
OSI Pharma has recently priced a private placement of $175MM of 3% convertible senior debt due 2038, and has also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $25MM. With these proceeds OSI Pharma intends to:
The new notes will be convertible, in certain circumstances, into common stock of OSI Pharma based upon a base conversion rate of 13.5 shares per $1,000 principal amount of notes which represents today approximately a near whopping premium of 60% to yesterdays $41.59 close.
I will be curious to hear the amount of the retiring debt and what portion of the private placement will then ultimately be added to their cash position as-of September ’07 of approximately $298MM (including short-term) investments.
Other products OSI have in the clinic include OSI-930 an inhibitor of c-Kit and the VEGFR-2, OSI-930 is designed to target both cancer cell proliferation and blood vessel growth (angiogenesis) in selected tumors and, in preclinical studies, OSI-930 has demonstrated efficacy in small cell lung cancer, glioblastoma, colorectal, renal, head and neck, non-small cell lung cancer and gastric cancer tumor models. Also in Phase I studies is OSI-906 an inhibitor of the insulin-like growth factor-1 receptor.
CLSDF is a regular contributor to BioHealth Investor
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Colorado Life Science Deal Flow
Perhaps not squarely on certain peoples radars in these parts OSI Pharmaceuticals (NASDAQ: OSIP) is sometimes not uttered in the same breath by some when referring to public CO companies, easy to do I suppose since corporate headquarters are actually located in Melville, NY however, a very significant campus is here in Boulder, housing both clinical and R&D functions. Why for the third year in a row, OSI Pharma’s Boulder office won an Award for Colorado's Best companies for working families. OSI Pharma placed 1st in 2006 and 2nd in 2005 in the medium-sized business category, and was named a 2007 Honorary Member of the Circle of Distinction for 2007.
Tomorrow OSI Pharma has a live webcast scheduled for 10:00am EST from the Stanford Group Healthcare Conference in Washington DC, listen (here). I’ll be interested to hear about their flagship product, Tarceva®, a small molecule tyrosine kinase inhibitor of the epidermal growth factor receptor used for second-line treatment of Non Small Cell Lung Cancer.
OSI Pharma has recently priced a private placement of $175MM of 3% convertible senior debt due 2038, and has also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $25MM. With these proceeds OSI Pharma intends to:
- To fund repurchases of ~1.5 million shares of its common stock
- To retire its 3.25% convertible senior notes due 2023
- And for general corporate purposes
The new notes will be convertible, in certain circumstances, into common stock of OSI Pharma based upon a base conversion rate of 13.5 shares per $1,000 principal amount of notes which represents today approximately a near whopping premium of 60% to yesterdays $41.59 close.
I will be curious to hear the amount of the retiring debt and what portion of the private placement will then ultimately be added to their cash position as-of September ’07 of approximately $298MM (including short-term) investments.
Other products OSI have in the clinic include OSI-930 an inhibitor of c-Kit and the VEGFR-2, OSI-930 is designed to target both cancer cell proliferation and blood vessel growth (angiogenesis) in selected tumors and, in preclinical studies, OSI-930 has demonstrated efficacy in small cell lung cancer, glioblastoma, colorectal, renal, head and neck, non-small cell lung cancer and gastric cancer tumor models. Also in Phase I studies is OSI-906 an inhibitor of the insulin-like growth factor-1 receptor.
CLSDF is a regular contributor to BioHealth Investor
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posted by Nico at
4:57 PM
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