Date: 2016-04-14
Type of information: IPO
Company: Geneuro (Switzerland)
Investors: Institut Mérieux (France) Servier (France) new international shareholders
Amount: € 33 million
Funding type: IPO
Planned used:
Others: * On April 14, 2016, GeNeuro announced that the company has completed its initial public offering on compartment B of Euronext's regulated market in Paris by way of an initial public offering in France and an international offering to institutional investors both inside or outside France, together with the French Public Offering, and raised €33 million. GeNeuro has set the offer price for its shares at €13 per share. As indicated at launch of the Offering, the IPO was supported by Institut Mérieux and Servier, which subscribed shares for a total amount of €9.3 million. Their support is a major vote of confidence in the Company and gives it a stable shareholder base consisting of two leading players in the life sciences industry. 78% of the funds raised among the new shareholders have been subscribed by international investors, particularly in the UK and in the United States. The 2,538,500 new shares offered in the Offering will be allocated as follows: Based on a total of 14,658,118 shares to be admitted to trading and an offer price of €13 per share, GeNeuro's market capitalisation amounts to approximately €190 million after the capital increase. The extension clause has been exercised for an amount of 88 500 shares. The number of new shares may also be increased by up to 9,441 additional new shares being issued if the Lead Managers and Bookrunners exercise their overallotment option under the Offer between now and 13 May 2016. * On January 15, 2016, Geneuro announced that the company has registered its "Document de Base" with the French stock market authorities (AMF) on January 14, 2016 (n°I.16-002) for the prospectus relative to the Company’s shares being listed on the Euronext market in Paris. GeNeuro develops new therapies for neurology and autoimmune disorders, such as multiple sclerosis. Geneuro's strategy differs from immunomodulatory approach used with most current treatments , since it is to neutralize and block a key factor involved in multiple sclerosis. Its lead product, the monoclonal antibody GNbAC1 targets the envelope protein of an endogenous retrovirus which could play a critical role in the pathogenesis of multiple sclerosis. Discovered in the early 90’s, the Human endogenous retrovirus of type W is closely associated with multiple sclerosis and, due to its neurotoxic properties, could be a causal factor of the disease. This retrovirus is normally latent in the genome of individuals, but it can be re-activated by certain co-factors to expresses a pathogenic protein, MSRV-Env. Recent evidence has demonstrated that this ENV-protein is expressed in multiple sclerosis lesions from an early stage, is pro-inflammatory and inhibits remyelination. In November 2014, GeNeuro has entered into a strategic partnership with Servier, to develop and market GNbAC1 in Multiple Sclerosis (MS). Under the terms of the agreement, GeNeuro will be responsible for the development of GNbAC1 until completion of Phase IIb, after which Servier can exercise the option to license the product for all markets excluding the USA and Japan. Last December, Servier has exercised its equity investment option, to become a minority shareholder in GeNeuro. The terms of the partnership agreement provide for GeNeuro to receive US$40 (€37.5) million from Servier for the completion of the Phase IIb study. Subject to exercising its option for a licensing agreement, Servier has agreed to finance the global Phase III development program and pay GeNeuro up to an additional US$355 (€325) million in future development and sales related milestones, as well as royalties on future sales. Geneuro has initiated the Phase IIb study “CHANGE-MS” (Clinical trial assessing the HERV-W Env ANtagonist GNbAC1 for Efficacy in Multiple Sclerosis) with GNbAC1 in Relapsing-Remitting Multiple Sclerosis (RRMS). Preliminary results are expected by the end of 2017. The aim of the Phase IIb study is to demonstrate on RRMS patients the clinical benefit of GNbAC1 in neutralizing the MSRV-Env protein, which has been identified as a potential key factor fueling the inflammatory and neurodegenerative components of MS.
Therapeutic area: Autoimmune diseases - Neurodegenerative diseases
