Zealand Pharma Provides Statement on Silicon Valley Bank Closure
Company announcement – No. 5 / 2023
Zealand Pharma Provides Statement on Silicon Valley Bank Closure
Copenhagen, Denmark March 12, 2023 – Zealand Pharma A/S (Nasdaq: ZEAL) (CVR-no. 20045078) a biotechnology company focused on the discovery and development of innovative peptide-based medicines, today issued the following statement:
On March 10, 2023, the California Department of Financial Protection and Innovation closed Silicon Valley Bank (SVB) and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. As receiver the FDIC will retain all the assets from SVB for later disposition.
Zealand has approximately DKK 162.6 million in cash deposits held at SVB as of March 10, 2023, which represents approximately 15% of its total cash, cash equivalents and marketable securities on that date. Zealand’s deposits with SVB are insured up to the USD $250,000 (DKK 1.75 million) limit with the excess cash being uninsured, in line with FDIC standards. The FDIC has stated that all insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. Uninsured depositors will be paid an advance dividend within the next week and receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of SVB, future dividend payments may be made to uninsured depositors. At this time, Zealand does not know to what extent it will be able to recover all of its cash in deposit at SVB nor the timing of recovery.
As of March 10, 2023, Zealand had cash, cash equivalents and marketable securities totaling DKK 1,071.4 million (including deposits at SVB).
The company will continue to closely monitor the potential impact of the SVB failure.
About Zealand Pharma A/S
Zealand Pharma A/S (Nasdaq: ZEAL) (“Zealand”) is a biotechnology company focused on the discovery and development of peptide-based medicines. More than 10 drug candidates invented by Zealand have advanced into clinical development, of which two have reached the market and three candidates are in late-stage development. The company has development partnerships with several pharma companies as well as commercial partnerships for its marketed products.
Zealand was founded in 1998 and is headquartered in Copenhagen, Denmark, with a presence in the U.S. that includes Boston. For more information about Zealand’s business and activities, please visit www.zealandpharma.com.
Forward-Looking Statement
The above information contains forward-looking statements that provide Zealand Pharma’s expectations or forecasts of future events. Such forward-looking statements are subject to risks, uncertainties and inaccurate assumptions, which may cause actual results to differ materially from expectations set forth herein and may cause any or all of such forward-looking statements to be incorrect. If any or all of such forward-looking statements prove to be incorrect, our actual results could differ materially and adversely from those anticipated or implied by such statements. All such forward-looking statements speak only as of the date of this release and are based on information available to Zealand Pharma as of the date of this release. Except as required by law, the Company assumes no obligation to update these forward-looking statements publicly.
Contacts:
Anna Krassowska, PhD
Vice President, Investor Relations & Corporate Communications
Zealand Pharma
Email: ank@zealandpharma.com
