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PDL BioPharma signs securities purchase agreement with Evofem Biosciences
12 April 2019 -

United States-based PDL BioPharma Inc (NASDAQ: PDLI) has signed a securities purchase agreement with United States-based Evofem Biosciences Inc (NASDAQ: EVFM), it was reported yesterday.

Based on the contract, the company is investing a total of up to USD60m in a private placement of securities.

The deal is likely to have two tranches. The first tranche includes USD30m, which has already been provided. In addition, PDL has the right to invest an additional USD30m in a second tranche alongside two present Evofem shareholders, which have the right to invest up to USD10m each. These investments will provide funding for the company's pre-commercial activities for Amphora, its investigational non-hormonal, on-demand prescription contraceptive gel for women.

Upon completion of the second tranche and presuming participation by PDL, Invesco and WIM, PDL expects to become one of the largest shareholders in Evofem, owning approximately 29% of the company's common stock. PDL will also have the right to appoint one member to Evofem's board of directors and a limited right to have one non-voting observer participate in Evofem board meetings.

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