DOR gets $3M as part of potential orBec deal

Florida, USA-based biopharmaceutical company DOR BioPharma says it has received $3.0 million as part of a non-binding letter of intent from fellow Sigma-Tau Pharmaceuticals, the US subsidiary of Italy's Sigma-Tau, which grants the latter exclusive rights to negotiate a potential deal regarding the former's developmental graft-versus-host disease treatment orBec (oral beclomethasone dipropionate). The accord, which runs until March 1 this year, also includes several of DOR's other pipeline compounds.

Under the terms of the agreement, Sigma-Tau has purchased $1.0 million of DOR's common stock at the market price of $0.246 per share, representing approximately 4 million shares. An additional $2.0 million will be paid in cash, and will be considered an advance payment to be deducted from monies due to DOR from to any future orBec commercialization deal between the two firms.

DOR added that, if no such agreement is reached by the expiration date, it is obligated to return the $2.0 million to Sigma-Tau within 60 days. The Miami-headquartered group added that, in this case, if repayment is not completed prior to May 31, interest will accrue at a rate of 6% compounded annually with Sigma-Tau retaining the option to convert the amount into common stock at a price per share equal to 80% of the market price at that time.