Protalix Raises $43.7 Million in PIPE

Rare Disease Staff

Protalix BioTherapeutics, which is developing and commercializing recombinant therapeutic proteins expressed through its plant cells, said it completed a $43.7 million private equity financing to advance its Fabry disease program and early stage pipeline. 

Fabry disease is a rare, lysosomal storage disorder. It is a genetic disease that results from deficient activity of the enzyme alpha galactosidase A resulting in progressive accumulation of abnormal deposits of a fatty substance called globotriaosylceramide (Gb3) in blood vessel walls throughout a person’s body. The accumulation of Gb3 leads to episodes of pain and impaired peripheral sensation to end-organ failure – particularly of the kidneys, but also of the heart and the cerebrovascular system.

Israeli and U.S.-based investors participating in the financing included Psagot Investment House, More Investment House, Highbridge Capital, UBS O’Connor, Rosalind Capital, and Alrov Properties, among others.

Protalix agreed to issue and sell to the purchasers an aggregate of approximately 17.6 million unregistered shares of the company’s common stock at a price of $2.485 per share. The company expects to generate gross proceeds equal to approximately $43.7 million in the private placement.

Each share to be issued will be accompanied by a warrant to purchase one share of its common stock at an exercise price equal to $2.36. Protalix shares ended the day at $2.39, up 30 cents.

“Our ability to secure this transaction under some of the most challenging market conditions in over a decade is a strong indication of the deep interest in our technology and platform, and serves as validation that our years of work with the Fabry community remains of significant, continued importance to these patients,” said Dror Bashan, Protalix’s president and CEO.

Photo: Dror Bashan, Protalix’s president and CEO