By Sheri Kasprzak
New York, July 10 - Tercica, Inc. entered into a stock purchase agreement with Genentech, Inc. as part of a combination product development and commercialization agreement between the two. The company also arranged a $2,922,538 placement of stock with Ipsen, SA and an affiliate.
Genentech agreed to buy 708,591 shares in the first closing of the offering at $5.645 each.
The investor has the option to buy up to $4 million in additional shares - up to 842,105 shares - at a price equal to the average of the closing stock prices for the 20 trading days immediately before the expiration of the first closing.
The investor may also purchase up to 1,052,632 shares in a subsequent closing, depending upon certain milestones, at a price equal to the average of the closing stock prices for the 20 trading days ending on the trade date immediately before the effective date of regulatory approval of a combination product for any indication other than specified short stature indications or adult growth hormone deficiency, provided the investor buys no more than $5 million in shares.
Genentech may not buy more than 2,603,328 shares total in the offering.
In the other deal, Tercica entered into an agreement to sell 519,101 of its shares to Ipsen and Suraypharm, an affiliate of Ipsen, at $5.63 per share.
Based in Brisbane, Calif., Tercica develops endocrinology products.
Genentech placement
| Issuer: | Tercica, Inc.
|
| Issue: | Stock
|
| Amount: | $4 million
|
| Shares: | 708,591
|
| Price: | $5.645
|
| Warrants: | No
|
| Investor: | Genentech, Inc.
|
| Pricing date: | July 6
|
| Stock symbol: | Nasdaq: TRCA
|
| Stock price: | $5.66 at close July 6
|
|
|
| Ipsen placement
|
| Issuer: | Tercica, Inc.
|
| Issue: | Stock
|
| Amount: | $2,922,538
|
| Shares: | 519,101
|
| Price: | $5.63
|
| Warrants: | No
|
| Investor: | Ipsen, SA
|
| Pricing date: | July 9
|
| Stock symbol: | Nasdaq: TRCA
|
| Stock price: | $5.63 at close July 9
|
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