French biotech firm Abivax has accomplished an oversubscribed €49.2 million ($49 million) financing spherical.
This included U.S. and European biotech specialist traders, led by TCGX, with participation from Venrock Healthcare Capital Companions, Deep Monitor Capital, Sofinnova Companions, Invus, and Truffle Capital by means of the completion of two transactions. The primary was a reserved capital improve of roughly €46.2 million ($46 million) by means of the issuance of 5,530,000 newly-issued shares with a nominal worth of €0.01 per share, representing 33% of its present share capital, at a subscription worth of €8.36 per share ($8.33).
The second was by means of the issuance of royalty certificates for an quantity of €2.9 million ($2.9 million).
Ulcerative colitis program
Hartmut J. Ehrlich, CEO of Abivax stated: “We’re excited to announce the profitable completion of Abivax’s oversubscribed capital improve, together with the issuance of royalty certificates that collectively quantity to €49.2 million. With these new monetary sources, we are going to pursue the corporate’s strategic precedence to conduct and well timed full our late-stage world scientific part 3 program of obefazimod for the therapy of ulcerative colitis (UC).
“Following the compelling outcomes of the earlier obefazimod upkeep research in UC, we’re assured to substantiate its glorious security and efficacy profile within the upcoming part 3 induction and upkeep research. There’s nonetheless a really excessive want for novel therapeutic administration choices that supply a continuing and long-lasting enchancment of the standard of lifetime of sufferers affected by continual inflammatory ailments. Abivax is extremely dedicated to completely exploit the anti-inflammatory potential of our lead compound obefazimod throughout completely different indications, beginning with reasonable to extreme ulcerative colitis.”
Didier Blondel, CFO of Abivax, added: “We’re happy that Abivax may entice new top-tier US biotech traders, TCGX, Venrock and Deep Monitor Capital, in addition to our present US and European biotech traders, for the capital improve and royalty certificates. The dedication of those traders, particularly contemplating the presently very difficult financing setting, is a vital affirmation of the potential of obefazimod in ulcerative colitis and all the continual inflammatory illness area.
“Based mostly on our present assumptions, our money runway has been prolonged till finish of Q1 2023. We’ll make focused use of those monetary sources, primarily for the conduct and completion of our part 3 scientific program in an effort to present obefazimod as a long-lasting and efficient therapy to sufferers in want and to maximise shareholder worth. We’re dedicated to finishing this funding sooner or later by means of extra non-dilutive and dilutive monetary sources in an effort to safe the total financing of our UC part 3 program.”
Use of funds
The corporate plans to make use of the funds to launch and proceed the scientific applications of obefazimod (ABX464), the corporate’s lead product in superior growth.
For ulcerative colitis, this implies the continuation of the part 2a and part 2b upkeep research and continuation of the worldwide pivotal part 3 program, which was initiated within the first half of 2022. The part 3 program will mix two induction research and one single upkeep examine, involving a complete of 1,200 sufferers and greater than 600 scientific examine websites, primarily in North America, Europe and Asia. The primary affected person is predicted to be enrolled into the part 3 program throughout September 2022.
The corporate can also be anticipating the continuation and completion of its part 2a upkeep examine for rheumatoid arthritis (RA); and the continuation of R&D work on obefazimod.
Near 80% of the online proceeds of the transaction can be allotted to the event of obefazimod, and primarily for the part 3 program.
Round 8% can be used for financing of R&D and dealing capital and different basic functions, with the remaining 12% for the redemption of (and cost of quantities payable pursuant to) present indebtedness.
The corporate stated it expects the proceeds will present it with the monetary sources to fund its operations by means of Q1 2023.
Extra wanted
Abivax stated its extra money wants (previous to the transaction) for the upcoming 12-month interval quantity to roughly €100 million ($100 million), or €54 million ($53.8 million) on high of the online proceeds of the transaction of €46 million ($45.9 million).
To cowl these extra money wants, the corporate stated it’s evaluating varied completely different financing instruments, each dilutive and non-dilutive. It has initiated discussions with lenders with the intention of securing within the quick time period a mixture of dilutive and non-dilutive financings for a further quantity of as much as €50 million ($49.8 million).
The corporate might think about additional fairness financing.
With out the additional money, the corporate stated it’ll overview cost-cutting measures which may entail suspending or suspending a few of its applications.
The full prices of the part 3 UC program till the top of 2024, which is the anticipated date of the outcomes of the 2 part 3 induction research, is estimated by the corporate to complete €200 million ($199 million).
