Erytech raises €70.5M in a private placement to U.S. and European investors

French Erytech Pharma has purchased ordinary shares of the company in a private placement reserved for a specified category of investors.

The company said in its press release that total gross proceeds from the Reserved Offering placement are expected to be €70.5 million, before deducting fees and expenses.

Erytech also said that it intends to use about half of the proceeds from the proposed Reserved Offering prepare launching of the potential Phase 3 for the pancreatic cancer indication.

Also, the portion of the money should go to increase of the company’s production unit in Europe and in the United States and to streamline its manufacturing processes and to assess the clinical development opportunities of eryaspase (GRASPA) for the treatment of other solid tumor indications.

“We believe the proceeds of this capital increase will enable us to engage in the Company’s next development phase. More specifically, and following the recent announcement of positive Phase 2b data from our clinical study evaluating eryaspase for the treatment of metastatic pancreatic cancer, we look forward to pursuing further clinical development in that indication. In addition, those promising results in the pancreatic cancer indication have lead us to evaluate the potential of eryaspase for the treatment of other solid tumor types, and confirm our strategic plan to expand our platform’s potential to additional therapeutic indications,” commented Gil Beyen, Chairman and CEO of ERYTECH Pharma.