While threatening note-holders with a bankruptcy filing, Epix Pharmaceuticals is offering cash and stock in exchange for $100 million in convertible senior notes. And in a separate announcement this morning, the developer said that it had sold U.S., Canadian and Australian rights to an imaging agent to Lantheus Medical Imaging for $28 million.
Tagged with a going-concern notice last month, Epix left little doubt that it will play hard ball to restructure its debt.
"If Epix is unable to restructure its obligations under the notes, it may be forced to seek protection under the United States bankruptcy laws," the company said in a press release. Epix shares closed at 46 cents yesterday.
Epix will be able to use about $18 million of its new deal money to help restructure the debt. The company said that it will pay Bayer $10.5 million to settle up on their development agreement for MS-325. The FDA approved 325 in December.
"The acquisition of MS-325 reinforces our growth strategy to continue to bring to market breakthrough new imaging tools." says Don Kiepert, president and CEO of Lantheus Medical Imaging. "MS-325 fits well within our current product portfolio of leading contrast imaging agents.
- here's Epix's release
- read the report from the Boston Globe
- see the story in Genetic Engineering News