U.S. site sale prolongs Erytech's financing, shares extend gains

Phaxiam Therapeutics SA

25/04/2022 13:17

(Updates share move, milestones adds analyst's comments)
    ** Erytech Pharma's  ERYP.PA  Paris-listed shares extend
gains in heavy volumes and rise around 36% on the group's plans
to sell its U.S. manufacturing facility to Catalent  CTLT.N 
    ** Contract drugmaker Catalent agreed to acquire Erytech's
cell therapy manufacturing facility in New Jersey for $44.5 mln,
the biopharmaceutical company said  urn:newsml:reuters.com:*:nASA037Z2
    ** Invest Securities analyst Jamila El Bougrini says the
deal prolongs Erytech's cash runway to mid-2024, meaning that
the group won't need to raise money
    ** "The markets seem to appreciate the extension of
financial capacities (...), and do not see it as a downscaling
of the company's prospects," she adds
    ** Over 2.2 mln shares have traded so far, i.e. around 763%
their 30-day moving average
    ** The agreement entails a long-term supply deal: Catalent
is set manufacture Erytech's cancer product candidate eryaspase
in the U.S.
    ** El Bougrini notes the sale is making it possible for
Erytech to have a production site in eryaspase's main market
    ** "Based on (its) latest annual reports, it would seem that
the Princeton site cost Erytech at least EUR 22.6 mln ($24.29
mln) between 2018 and 2020 to build," she flags
    ** The sale price to Catalent would thus offer a capital
gain EUR 18.9 mln, i.e. a revaluation of almost 83%, the analyst
adds
    ** Erytech stock is still down around 20% YTD, and on track
for its best day since July last year

($1 = 0.9305 euros)

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))