Set up of a standby equity financing (PACEO®) to support the growth projects of BioAlliance Pharma

Regulatory News:

BioAlliance Pharma SA (Euronext Paris - BIO), an innovative Company dedicated to the development of orphan oncology products and to supportive care products, is setting up a standby equity financing (PACEO^®) with Société Générale in accordance with the authorisation granted by the general meeting held on 31 May 2012.

This standby equity financing will enable, if needed, to reinforce the financial flexibility in order to support the acceleration of the development projects of BioAlliance Pharma and its external growth strategy.

Société Générale undertook to subscribe successive capital increases over the next 24 months, in tranches of up to 400 000 shares (i.e. 2.3% of the current capital) and up to 1,765,000 shares in aggregate (i.e. 9.9% of the current share capital).

The shares will be issued at a 5% discount to the volume weighted average price of the shares for the three trading days immediately preceding the relevant issue date. When issued, the shares are not intended to be kept by Société Générale, which aims at selling them in the market.

Potential impact of the standby equity financing (PACEO^®) on a 1% stake in BioAlliance Pharma prior to the implementation of PACEO^®:

⁽¹⁾ Leading to the issuance of 1,765,000 new shares.

⁽²⁾ Based on 17,659,715 shares representing BioAlliance Pharma’s share capital as of December 31, 2012.

⁽³⁾ After having issued 1,060,909 new shares, assuming that all the dilutive instruments issued or attributed as of the date of this press release have been fully exercised.

About BioAlliance Pharma

Dedicated to cancer and supportive care treatment with a focus on resistance targeting and orphan products, BioAlliance conceives and develops innovative products, for specialty markets especially in the hospital setting and for orphan or rare diseases.

Created in 1997 and introduced to the Euronext Paris market in 2005, BioAlliance Pharma’s ambition is to become a leading player in these fields by coupling innovation to patient needs. The company’s teams have the key competencies required to identify, develop and register drugs in Europe and the USA.

BioAlliance Pharma has developed an advanced product portfolio:

Specialty products
Loramyc®/Oravig® (oropharyngeal candidiasis in immunocompromised patients): Registered in 28 countries (EU, US, Korea)
Sitavir®/Sitavig® (Acyclovir LauriadTM) (labialis herpes): Registered in 8 European countries, registration status in the US
Fentanyl LauriadTM (chronic cancer pain): Positive preliminary Phase I results

Orphan Oncology products
Livatag® (Doxorubicin Transdrug™) (primary liver cancer): Phase III on going
Validive® (Clonidine LauriadTM) (mucositis): Phase II on going
AMEP® (invasive melanoma): Phase I on going

For more information, visit the BioAlliance Pharma web site at www.bioalliancepharma.com

About PACEO^®

The PACEO^® is an equity financing solution that was designed in 2002 by Société Générale. The PACEO^® helps issuers to diversify their funding sources through an additional financing option, while preserving the financial balances. The PACEO^® may be drawn at the issuer’s sole discretion via the issue of new shares at a low discount to the then market price; this solution provides the same benefits as a capital increase while providing the same guarantee as a confirmed credit line. With this transaction, Société Générale, the leading institution for equity lines in France, has set up its 31^st PACEO^®.