Alexion Pharmaceuticals Inc. is tapping some of its cash pile to finance the Cheshire drug maker's pending $1.1 billion purchase of Enobia Pharma Corp. of Cambridge, Mass., a regulatory filing shows.
Alexion announced on Dec. 28 its plans to buy Enobia, which is in clinical trials on its treatment for a rare, potentially fatal metabolic disease.
Under terms of the deal, Alexion must pay Enobia investors $610 million in cash at closing of the deal sometime in the first quarter. Alexion also has committed to pay up to of $470 million more upon Enobia's achievement of various regulatory and sales milestones.
In its 8-K filing with the Securities and Exchange Commission, Alexion says it will finance the deal through a combination of cash on hand and $300 million from a new secured term loan credit facility to be signed at closing of the merger. At Sept. 30, Alexion was sitting on a cash horde totaling $445.2 million.
In less than three years, Alexion has transformed into biopharma cash machine, with a market capitalization of $13.3 billion, by developing and marketing Soliris as a treatment for a rare and potentially fatal form of anemia and a rare genetic ailment that attacks vital organs.