Business & Finance
Zealand Pharma announces share capital increase under collaboration with Alexion Pharmaceutical
21 March 2019 -

Zealand Pharma A/S (Zealand)(Nasdaq:ZEAL)(NYSE:ZEAL), a biotechnology company focused on the discovery and development of innovative peptide-based medicines, announced on Wednesday, jointly with biopharmaceutical company Alexion Pharmaceuticals Inc (Alexion) (Nasdaq:ALXN), a collaboration to discover and develop novel peptide therapeutics for complement-mediated diseases.

Reportedly, this agreement provides Alexion with exclusive worldwide licenses, as well as development and commercial rights, for one pre-clinical target and up to three additional targets within the complement pathway.

Also, Zealand Pharma will receive upfront payment of USD25m and an equity investment of UDD15m, with potential for additional milestone and royalty payments.

As a part of the agreement, Alexion Pharmaceuticals will invest USD15m in Zealand to subscribe for 802,859 new shares each with a nominal value of DKK1.00, at a subscription price of USD18.68 per new share.

Zealand's board of directors has, in accordance with article 7.1 of Zealand's articles of association, exercised an authorisation granted by Zealand's extraordinary general meeting to increase the share capital by issuing 802,859 new shares to Alexion Pharmaceuticals Inc.

Following this registration of the new shares with the Danish Business Authority, Zealand's share capital will amount to DKK31,661,686, divided into 31,661,686 shares with a nominal value of DKK1 each.

According to the company, these new shares rank 'pari passu' with Zealand's existing shares and carry the same dividend and other rights. Each new share carries one vote at Zealand's general meetings. Zealand only has one class of shares.