DGAP-News Abivax secures EUR 15m non-dilutive financing from Kreos Capital
DGAP-News: ABIVAX / Key word(s): Bond
Abivax secures EUR 15m non-dilutive financing from Kreos Capital
- EUR 15m straight bonds, with no associated dilution, favorable financial conditions in interest rates and no expected transaction fees
- Pre-negotiated EUR 5m additional straight bond tranche to be decided before 2020 year-end
- Cash for operations extended until Q2 2021
PARIS, October 13, 2020 - 08:00 a.m. (CET) - Abivax (Euronext Paris: FR0012333284 - ABVX), a clinical-stage biotechnology company harnessing the immune system to develop novel treatments for inflammatory diseases, viral diseases and cancer, today announces that it has obtained a EUR 15m non-dilutive debt financing from Kreos Capital, with an additional EUR 5m to be decided before 2020 year-end.
This EUR 15m financing comprises two tranches of EUR 10m and EUR 5m respectively, with the first tranche to be fully drawn immediately, and a second tranche to be drawn before November 1, 2020. The loan is expected to extend Abivax's cash runway until Q2 2021, before any potential revenues from corporate partnering or any future additional funding, preferably non-dilutive.
Prof. Hartmut Ehrlich, M.D., CEO of Abivax, said: "We are very happy about the decision of Kreos Capital to provide us with this non-dilutive loan, as it allows Abivax to keep executing on its priority clinical programs in chronic inflammatory diseases according to plan. We continue to focus on the ABX464 Phase 2b ulcerative colitis trial, with top-line results expected in Q2 2021, while the ABX464 Phase 2a study in rheumatoid arthritis is also progressing well. Furthermore, the financing will be used to advance the projects that are crucial for the future development of the Company, such as the preparation of the clinical Phase 3 in UC and the initiation of a pivotal Phase 2b/3 study in Crohn's disease. In parallel, Abivax is taking all necessary steps to ramp-up manufacturing and to get ready for a potential commercialization of ABX464 in Covid-19, subject to a positive outcome of the ongoing Phase 2b/3 trial, anticipated for early 2021. Abivax is focusing on the achievement of the upcoming clinical milestones in its core program in inflammation, while further assessing partnering opportunities."