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Investing.com -- BioCryst Pharmaceuticals Inc (NASDAQ:BCRX) stock jumped 4.2% Friday after the company announced it will sell its European ORLADEYO business to Neopharmed Gentili for up to $264 million.
The deal includes an upfront payment of $250 million upon closing, which is expected by early October, and up to $14 million in future milestones tied to sales in Central and Eastern Europe. BioCryst plans to use the proceeds to completely retire its remaining $249 million term debt from Pharmakon, eliminating approximately $70 million in future interest payments.
As a result of this transaction, BioCryst has significantly improved its financial outlook, now expecting to end 2027 with approximately $700 million in cash and no term debt—a $400 million increase from its previous net cash guidance.
"This transaction is consistent with our strategy of making ORLADEYO available to patients in Europe through the team we built, and it now provides the capital to retire our remaining term debt, leaving us with a significantly higher margin business," said Jon Stonehouse, president and CEO of BioCryst.
The deal includes the transfer of BioCryst’s European organization to Neopharmed Gentili, which will maintain commercial continuity for ORLADEYO while generating at least $50 million in expected annual operating expense savings for BioCryst.
Neopharmed Gentili will assume responsibility for all royalties related to European sales, though European ORLADEYO revenues will still count toward BioCryst’s global royalty tier calculations and the cap on the OMERS royalty.
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