Date: 2016-01-07
Type of information: Restructuring
Compound:
Company: Transgene (France)
Therapeutic area: Cancer - Oncology
Type agreement: restructuring
Action mechanism:
Disease:
Details: * On January 7, 2016, Transgene announced its new strategic development plan, as well as the securing of new financing and the completion of its restructuring program. Following the completion of its restructuring plan, launched at the end of June 2015, Transgene announced its strategy based on its strengths in the immune-engineering of viral vectors and on its expertise in pre clinical and clinical development. Transgene will, as a priority, combine its products with other immunotherapy products, including immune checkpoint inhibitors (ICI), for the treatment of cancers and infectious diseases. In pre-clinical studies, the results obtained by Transgene, as well as those reported in recent scientific journals using comparable approaches, demonstrate the potential and the rationale of combining immunotherapeutics. Transgene thus intends to be an active player in this new paradigm where it has key strengths. The company has already initiated discussions with clinical and biopharmaceutical partners to start five Phase 2 clinical studies in combination with ICI’s for its two most advanced products. The first patients should be treated in mid-2016. The main combination programs are:
- Combination of TG4010 with an ICI in the first- and second-line treatment of non-smallcell lung cancer (NSCLC).
- Combination of Pexa-Vec with an ICI in the first-line treatment of hepatocellular carcinoma (HCC), as well as for the treatment of other solid tumors.
Transgene is also strengthening its translational research capabilities through collaborations with academic institutions and hospitals. In addition to its current collaborations with the Gustave Roussy Institute in Paris and the University of Fudan in Shanghai, the Company has recently entered into a collaboration with the ICM (Institute for Brain and Marrow - Institut
du cerveau et de la moëlle) in Paris in the area of neuro-oncology. Collaborations have also been initiated with the Hospital Service Frédéric Joliot at Orsay for in vivo molecular imaging and with the University of Surrey (United Kingdom) in the area of in vivo analysis, aimed at developing innovative oncolytic viruses which can rapidly progress from pre-clinical animal models to human pathology.
Financial terms: The financing of this new strategic development plan will come from two sources, providing the Company the means to reach a number of value-creating milestones over the next two years: The restructuring plan announced in June 2015, including, notably, the Company‘s withdrawal from and outsourcing of process development and bio-manufacturing activities, is now in its very final steps of completion. This plan translates into the reduction of some fifty percent of the total number of employees compared to the number at the end of 2014. The cost of the plan is estimated at around 7.5 million euros, and its impact on cash consumption will mainly be in 2016. The reduction in operating costs as a result of the plan are forecast at more than 15 million euros per year, starting this year.
- A loan of 20 million euros has been obtained from the EIB (European Investment Bank) under the IDFF (Infectious Diseases Finance Facility) program. This is a 5-year loan and the principal and accumulated interest will be reimbursable only from the fourth year. The loan will be released in two tranches at the request of the Company.
- Transgene has received a commitment by its major shareholder, the Institut Mérieux, to provide additional financing of around 10 million euros, confirming its support of the Company’s strategy.
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