Liminal BioSciences Inc. (LMNL) stock prices were up 4.49% as of the market close on May 28th, 2021, bringing the price per share up to USD$4.42 at the end of the trading day.
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Divestment of Plasma Centers
The clinical-stage biopharma company announced on May 21st, 2021 that it had closed the previously announced divestment of 2 of its plasma collection centers. Accordingly, Prometic Plasma Resources Inc. and Prometic Plasma Resources (USA) Inc. were both divested to Kedrion S.p. A.
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Share Purchase Agreement
As per the Share Purchase Agreement, the involved parties additionally entered into an option agreement. This agreement saw Kedrion being granted the right to acquire the remaining portion of LMNL’s plasma-derived therapeutics business by June 15th, 2021. Ryplazim business that was operated through the company’s subsidiaries was also included in the deal.
Capital Generated
LMNL received total consideration amounting to USD$17 million for the 2 plasma centers and the share purchase agreement. The capital was received upon the closing of the cumulative agreement and is forecasted to be allocated towards the support of LMNL’s strategic priorities, including investment opportunities to facilitate the development of the company’s small molecule pipeline.
Additional Consideration
Kedrion will be taking over the ongoing costs associated with the plasma collection centers as a result of the transition. Should Kedrion exercise the option outlined in the share purchase agreement, the company will be granted an additional USD$5 million in addition to 70% of the net sale proceeds from any PRV that happens to be issued in conjunction with the possible approval of the BLA.
Solid Liquidity Position
The company reported financials that indicated promising improvement over the numbers reported from the same time period of the previous quarter. Net loss was down from USD$27.7 million reported in Q1 2020 to USD$20.9 for the first quarter of the fiscal year 2021. As of March 31st, 2021, the company reported USD$21.6 million in cash and cash equivalents, while working capital as of the same time period was USD$33.5 million.
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Future Outlook for LMNL
Armed with a solid liquidity position, LMNL is poised to capitalize on the opportunities presented to it over the upcoming quarters. The company is hopeful that its continued business collaborations with Kedrion will result in progressive growth. Current and potential investors look to the management to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
