Portola Pharma Wins on Pfizer and Bristol-Myers Loan Agreement

By Chris Lange Updated Jan 12, 4:38PM EST · Published Dec 19, 12:20PM EST

Portola Pharma Wins on Pfizer and Bristol-Myers Loan Agreement — © Thinkstock

Portola Pharmaceuticals Inc. (NASDAQ: PTLA) shares saw a handy gain on Monday after it was reported that the company had received a key loan. Specifically, the company announced that it has signed a $50 million loan agreement with Bristol-Myers Squibb Co. (NYSE: BMY) and Pfizer Inc. (NYSE: PFE) that provides additional funding toward development and clinical studies of AndexXa (andexanet alfa), an investigational compound that is a potential antidote for Factor Xa inhibitors.

Keep in mind that Portola has a market cap of just over $1 billion.

Under the terms of the agreement, Bristol-Myers Squibb and Pfizer will each loan Portola $25 million. The principal and interest will be repaid primarily through royalties on AndexXa commercial sales. No shares, warrants, options or other equity components were or will be issued in connection with the loan. The nonsecured loan does not involve any transfer of patent ownership or licenses.

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For some background: AndexXa is a U.S. Food and Drug Administration (FDA)-designated Breakthrough Therapy. It is currently in development for patients treated with a direct (apixaban, rivaroxaban or edoxaban) or indirect (enoxaparin) Factor Xa inhibitor when reversal of anticoagulation is needed due to life-threatening or uncontrolled bleeding.

Earlier this year, Portola received a Complete Response Letter (CRL) from the FDA regarding its Biologics License Application for AndexXa. Portola expects to resubmit the BLA in 2017.

Tao Fu, chief commercial and business officer of Portola, commented:

This agreement reflects the commitment and support of the andexanet alfa program by our long-standing partners BMS and Pfizer and helps Portola to continue moving rapidly toward our goal of gaining regulatory approval in 2017. We are committed to working with the FDA to bring AndexXa to market as patients currently have no approved antidote available to reverse Factor Xa inhibitors.

Excluding Monday’s move, Portola has underperformed the broad markets, with the stock down about 63% year to date.

Shares of Portola were trading up about 10% at $20.72 on Monday, with a consensus analyst price target of $26.54 and a 52-week trading range of $15.68 to $52.50.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.