FRAMINGHAM, MA - December 5, 2006 -- GTC Biotherapeutics, Inc. ("GTC", Nasdaq: GTCB) reported today that its shareholders approved two proposals that will allow it to complete its proposed sales of securities to LFB Biotechnologies. The first proposal, approving an increase in the number of GTC's authorized shares of common stock to 200 million, was passed by a vote of 40.6 million shares for the proposal and 3.5 million shares against, with 0.5 million shares abstaining. This exceeded the requirement that a majority of GTC's outstanding voting stock vote in favor of the proposal. The second proposal, approving the issuance of 3,630,000 shares of common stock and a convertible note to LFB Biotechnologies in accordance with our agreement, was passed by a vote of 36.5 million shares for the proposal and 2.7 million shares against, with 0.4 million shares abstaining. This met the requirement for a majority of the votes cast to be in favor of the proposal.
These affirmative votes enable GTC to complete LFB Biotechnologies' $25 million investment into GTC in accordance with the terms of the agreement. Of the total investment, the sale to LFB Biotechnologies of $6 million of convertible preferred shares was completed in early October, approximately $14.6 million will be completed before year end, and the balance of approximately $4.4 million shares for common stock is scheduled to close in January 2007.
About GTC Biotherapeutics, Inc.
GTC Biotherapeutics develops, produces, and commercializes therapeutic proteins through transgenic animal technology. In August 2006, GTC obtained the first approval anywhere in the world of a therapeutic protein produced from a transgenic animal. ATrynŽ, GTC's recombinant form of human antithrombin, was approved by the European Commission for use in patients with hereditary antithrombin deficiency undergoing surgical procedures. ATrynŽ is in phase III studies to support a filing in the United States requesting approval in the hereditary deficiency indication. LEO Pharma A/S of Denmark will launch ATrynŽ commercially in Europe and will work with GTC to develop ATrynŽ as a potential treatment for disseminated intravascular coagulation (DIC) in conjunction with severe sepsis. LEO plans to commence a phase II study in DIC at the end of 2006. In addition, GTC established a strategic collaboration with LFB Biotechnologies of France to jointly develop recombinant forms of human plasma proteins and monoclonal antibodies. The first program of the collaboration will be to develop recombinant human factor VIIa as a potential treatment for hemophilia in patients with antibodies to other coagulation factors.
GTC has also recently been granted a patent in the United States for the production of any therapeutic protein in the milk of any transgenic mammal through 2021. GTC's transgenic production platform is particularly well suited to enabling cost effective development of proteins that are difficult to express in traditional recombinant production systems as well as those that are required in large volumes. Additional information is available on the GTC web site, http://www.gtc-bio.com.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the planned completion of the equity and debt investments in GTC. Such forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such statements. Factors that may cause such differences include, but are not limited to, the risks and uncertainties discussed in GTC's most recent Annual Report on Form 10-K and its other periodic reports filed with the Securities and Exchange Commission, including the risks and uncertainties associated with dependence upon the actions of strategic partners. GTC cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this document, and GTC undertakes no obligation to update or revise the statements, except as may be required by law.
CONTACT:
GTC Biotherapeutics, Inc.
Thomas E. Newberry
Vice President, Corporate Communications
(508) 370-5374 Feinstein Kean Healthcare for GTC Biotherapeutics, Inc.
Francesca DeVellis
(617) 577-8110
Copyright 2006 GTC Biotherapeutics, All Rights Reserved