Shield Therapeutics enters transformational collaboration agreement with Viatris and raises debt and equity finance

We have advised Shield Therapeutics plc, an AIM-listed commercial stage specialty pharmaceutical company, on three simultaneous complex transactions including its transformational collaboration agreement with global healthcare company Viatris Inc. (NASDAQ: VTRS).

Shield has entered into an exclusive, multi-year agreement with Viatris to co-commercialise Accrufer®, Shield's novel, oral iron therapy for the treatment of iron deficiency. Accrufer® (known as Feraccru® outside the US), avoids some of the unpleasant side effects that are found in standard oral tablets often prescribed to those suffering from iron deficiency.

In addition to the collaboration agreement, Shield have extended an existing convertible debt facility by $10 million with international pharmaceutical company AOP Health International Management and undertaken an $18.5 million equity placing and subscription, potentially raising a further up to £3.9m pursuant to an open offer. Peel Hunt acted as NOMAD, joint bookrunner and joint broker and finncap acted as joint bookrunner and joint broker to Shield on its proposed equity fundraise.

Commenting on the transaction, Partner and Head of UK Corporate Life Sciences at Taylor Wessing, Andrew Edge said: "It has been a pleasure to continue to work with Greg, Hans-Peter, Lucy and the rest of the Shield team. This transformative collaboration means Shield and Viatris can jointly build on the good progress that Shield has made since the launch of Accufer® in the US in 2021. We look forward to continuing working with Shield as the company transitions into its next stage of growth."

Greg Madison, CEO of Shield Therapeutics plc said: "We are very grateful to the Taylor Wessing team for their continued support and involvement throughout this complex transaction. The collaborative approach from the Taylor Wessing Corporate, Commercial and Finance teams and in-depth expertise from all practices was simply outstanding."

The team was led by partner Andrew Edge with support on the equity fundraise from associates Samuel Curme and Victoria Smaill, trainee solicitor Joe Burton and paralegal Catherine Morrisey. Partner Adrian Toutoungi led on the collaboration agreement with Viatris with support from senior associate Charlie Adams and partner Fiona Coady led on the extension of the debt facility with support from senior associate Kate Bowden and associate Alexander Swayne.