Montreal-based specialty pharmaceutical firm Knight Therapeutics said Thursday that it has agreed to invest $13 million in Sectoral‘s New Emerging Medical Opportunities Funds II. The transaction is expected to be completed June 30.
MONTREAL, QUEBEC–(Marketwired – June 26, 2014) – Knight Therapeutics Inc. (TSX:GUD) (“Knight”), a leading Canadian specialty pharmaceutical company, announced today that it has entered into a letter of agreement with Sectoral Asset Management Inc. (“Sectoral”) to invest USD$13 million into its New Emerging Medical Opportunities Funds II, Ltd. (“NEMO II”).
In exchange for Knight’s investment in NEMO II, which is expected to close June 30, 2014, Sectoral will encourage Sectoral-invested companies (“Investee Companies”) to select Knight as their Canadian partner of choice. Additionally, Sectoral will facilitate introductions for loan agreements between Investee Companies and Knight.
As of the end of March, 2014, Sectoral has USD$3.6 billion in assets under management, all invested in the healthcare sector. Since 2000, Sectoral has invested in over 500 companies and currently holds positions in over 100 companies. “Sectoral is an ideal partner from which we can leverage their proven pharma deal hunting skills and vast relationships to secure Canadian product rights,” said Jonathan Ross Goodman, President and CEO of Knight. “We expect this investment to pay dividends both (i) from the fund return and (ii) from new products commercialized in Canada by Knight.”
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. Knight Therapeutics’ shares began trading on the TSX-V on March 3, 2014 and graduated to the TSX on April 29, 2014 under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company’s web site at www.gud-knight.com or at www.sedar.com.
About Sectoral Asset Management Inc.
Founded in 2000 by Jérôme Pfund, CFA and Michael Sjöström, CFA, Sectoral Asset Management, is an industry-leading specialist in managing global investment portfolios in the healthcare sector. In its small cap strategy, currently managed by Dr. Maha Katabi, CFA, Sectoral has done over 70 different investments, since 2007, in small cap listed and late stage private equity companies in the biotech, medtech and life sciences tools industries, generating a first quartile performance as compared to a late stage private equity peer group over that time period.