The cheapest european stock
NEOVACS : 0.0003
Number of Neovacs shares outstanding 691,803,541
= marketcap: 207.541 euro
Euronext Growth Paris
FR001400HDX0 – Stock
Neovacs: The prospect of a major contract for Pharnext validates Neovacs’ investment strategy
October 23, 2023 at 08:05
Suresnes, October 23, 2023 – 8 a.m. CET - Néovacs (Euronext Growth Paris: ALNEV) provides an update on its investment strategy following the latest announcements from its subsidiary, Pharnext, a biopharmaceutical company at an advanced clinical stage developing a drug candidate for Charcot-Marie-Tooth disease type 1A (CMT1A).
As a reminder, in spring 2020, Néovacs unveiled a new strategic roadmap based on the continuation of internal research programs and, at the same time, the implementation of an investment policy in BioTech and MedTech companies. . This policy makes it possible to diversify the potential sources of income for Néovacs, thus contributing to reducing the risk profile, and bringing value to the investments through the experience and scientific, managerial and financial knowledge of the Néovacs teams.
In this context, Pharnext constitutes by far the most promising investment, thanks to its advanced clinical stage (Phase III study completed awaiting the first results in a few weeks), the amount of sums invested to date (€21.1 million ) and its status as a listed company.
This potential was confirmed this Monday through the announcement, by Pharnext, of the receipt of two binding offers with a view to the signing of an agreement allowing the valuation of its most advanced drug candidate currently in development at more than €250 million. pivotal Phase III clinical study (PREMIER trial) in Charcot-Marie-Tooth disease type 1A (CMT1A), a rare debilitating peripheral neuropathy[1].
Under the terms of the partnership between Néovacs and Pharnext, Néovacs could receive remuneration indexed to the proceeds from the sale of all or part of Pharnext's assets (15% of the amount if it is greater than €1 million) or to revenues. a license (also 15%). In addition, Néovacs has share subscription warrants allowing it, from the beginning of 2024, to take up to 30% of the capital of Pharnext for an additional investment of €20 million. Based on the latest financial analysis published by research firm Edison, the total value of Pharnext's assets is estimated at €214 million.
Hugo Brugière, CEO of Néovacs, declares: “The favorable outcome that is emerging for Pharnext in the discussions around the valuation of its assets is excellent news in more than one way. For Pharnext, first, that we managed to get out of the strategic and financial impasse in which the company found itself at the end of 2022. For Néovacs, then, which will be able to demonstrate its ability to create value for its policy of investment. For the world of French biotechs, finally, which confirm the power of their innovation and their ability, provided they are well managed, to negotiate deals worth hundreds of millions of euros. »
ABOUT NEOVACS
Néovacs is a French biotechnology company, listed on Euronext Growth since 2010, specializing in therapeutic vaccines targeting the treatment of autoimmune diseases. Its innovative technology called Kinoid®, patented until 2038, makes it possible to induce a polyclonal immune response, applicable in several indications. Neovacs has developed IFNa Kinoid for the treatment of lupus in a phase IIb clinical study. The main study has been completed, full results were presented at the 13th International Lupus Congress 2019. The Company has also completed promising preclinical work with another therapeutic vaccine, IL-4/IL-13 Kinoid, for the treatment of allergies. The ambition of this “Kinoid® approach” is to enable patients to better tolerate a lifelong treatment that would be more effective, well tolerated and very flexible in its administration. For more information: www.neovacs.fr
