Ziopharm and Intrexon tweak the terms of their channel collaborations

• With the aim of "facilitating increased investment in clinical development" by Ziopharm (ZIOP -4%), the company and Intrexon (XON -4.2%) amend their Exclusive Channel Collaborations in oncology and graft-versus-host disease.
• The amended agreement reduces the operating profits payable (royalty) to Intrexon from 50% to 20%. In exchange for the haircut, Ziopharm will issue $120M (100K shares) of a new class of preferred to stock to Intrexon that will pay a monthly dividend of 1% in additional preferred shares.
• The preferred stock will convert to common shares upon the U.S. approval of a product or under certain other conditions such as a change of control of Ziopharm. The conversion price will be determined by the volume-weighted average closing price of ZIOP's common stock over the 20 trading days preceding the product approval.
• The changes do not apply to Intrexon's collaboration with Merck Serono.
• Previously: Ziopharm up 15% on Intrexon/Merck Serono deal (March 30, 2015)
• Previously: Intrexon and Ziopharm set for opening gaps (Feb. 10, 2015)