Date: 2015-06-23
Type of information: IPO
Company: Abivax (France)
Investors:
Amount: €57.7 million
Funding type: IPO
Planned used: Abivax is a biotechnology company focused on the discovery, development and commercialization of anti-viral compounds and human vaccines to treat some of the world’s most life-threatening viral diseases, including chronic Hepatitis B (CHB) and HIV/AIDS, as well as Ebola, Dengue and Chikungunya. Abivax has 2 first-in-class compounds in advanced clinical development: ABX203, a therapeutic vaccine that could be a cure for chronic Hepatitis B and ABX464, a novel small molecule against HIV with a number of important potential competitive advantages, including the lack of induced resistance and a long-lasting effect. The broader Abivax portfolio includes additional anti-viral compounds that may enter the clinical phase in the coming 12-18 months.The IPO aims to finance the clinical development programs for both lead products and specifically pivotal study in Asia for ABX203 in the treatment of chronic Hepatitis B and Phase II clinical trial against HIV/AIDS. ABX203 is a therapeutic vaccine composed of 2 recombinant proteins from the Hepatitis B vaccine, the surface antigen (HBsAg) and the nucleocapsid (core) structure (HBcAg). This combination of antigens has been designed to induce immune response in patients suffering from chronic Hepatitis B. It was in-licensed in 2013 from the CIGB, following the completion of successful phase I, I/IIa and II/III clinical trials run by CIGB in Cuba and Bangladesh. Abivax owns an exclusive license to develop and commercialize ABX203 in more than 80 countries in Asia, Europe and Africa. A pivotal Phase IIb/III study with ABX203 is currently recruiting patients in the Asia-Pacific region under the responsibility of Abivax. Previous clinical studies have revealed that ABX203 can deliver a significant improvement in the treatment of chronic Hepatitis B via controlling viral load for a much longer period of time when compared to current treatment options. ABX203 could be marketed as soon as 2017.
Abivax has also pioneered relationships with Cuba’s world-class vaccine institutes (CIGB - Center for Genetic Engineering and Biotechnology, Finlay Institute) as a way to build its product pipeline. Through these relationships, Abivax has secured broad access to Cuban R&D and product manufacturing. These relationships have already resulted in a number of important deals for Abivax including the exclusive in-licensing of ABX203 (chronic Hepatitis B) and of a novel antiviral compound against Dengue, and the acquisition of the distribution rights of three commercial vaccines against Typhoid, Meningococcus B&C and Leptospirosis, for which Abivax has acquired exclusive and non-exclusive distribution rights. These three vaccines could be marketed as early as 2015, subject to the signing of distribution agreements with local partners.
ABX464 is a novel, small molecule that inhibits HIV replication. For the first time in the treatment of AIDS, this molecule has the potential to deliver a long-lasting reduction in the patient’s viral load after only a few weeks of treatment. ABX464 could be the first treatment to avoid the development of mutants, thereby preventing resistance to the treatment. Enrolment in the Phase IIa clinical study started in January 2015 in Mauritius. ABX464 is the first clinical candidate molecule generated from Abivax’s proprietary technology platform and chemical library. Abivax owns exclusive and worldwide distribution rights for ABX464. The platform has been designed based on an in-depth understanding of the processing of viral RNA within the human host cell and the ability of the compound’s novel mechanism of action to block the biogenesis of viral RNA. Abivax has pioneered a proprietary antiviral platform, based on this novel mechanism of action to prevent viral replication. This platform and its compound library could also deliver additional medicines against diseases such as Dengue, Chikungunya and Ebola.
Others: * On June 23, 2015, Abivax announced the successful completion of its Initial Public Offering (IPO) on Euronext Paris raising a total of €57.7 million. The Board of Directors of Abivax met on June 23, 2015 and decided to fully exercise the extension clause and the lead managers and bookrunners decided to exercise the overallotment option. Abivax will issue 2,707,089 new shares at a price of €21.30 per share. On the basis of the offer price, the company’s market capitalization is €205 million on a non-diluted basis. * On June 5, 2015, Abivax announced the launch of its Initial Public Offering (IPO) on Euronext’s regulated market in Paris (Euronext Paris). The French Autorité des marchés financiers (AMF) has granted visa number 15-255 dated June 4, 2015 to the French prospectus relating to the IPO of Abivax, which comprises a registration document registered with the AMF May 19th with the number I.15-040 and a securities note (including a summary of the prospectus). The indicative price range is €18.26 to €24.34 per share. This global placement is aimed primarily at institutional investors in France and in certain other countries, excluding notably the United States of America, Canada, Australia, and Japan and a public offering in France in the form of an open price aimed primarily at retail investors. The shares of the Company are eligible for both the French PEA and PEA PME regimes 2,046,949 new shares will be issued through a share capital increase and/or an offsetting of receivables, in the form of a public offering and global placement, i.e. approximately €43.6 million (based on the midpoint of the indicative price range, ie €21.3 per share), including €2 million of debt offset. The size of the Offering can be increased by 15% (ie 307,042 new shares) to reach a maximum of 2,353,991 new shares in case of the complete exercise of the Extension Clause, ie €50.1 million (based on the midpoint of the indicative price range). Overallotment option: The size of the Offering can be increased by a further 15% (ie 353,098 new shares) to reach a maximum of 2,707,089 new shares in case of the complete exercise of the overallotment option, ie €57.7million (based on the midpoint of the indicative price range). The funds managed by Truffle Capital have made a commitment to participate in this Offering for an order of up to €5 million, i.e. 11.5% of the gross amount of the Offering (excluding the Extension Clause and the OverAllotment Option). This subscription commitment will be carried out as follows: as a debt off-set of €2 million as a cash contribution and up to €3 million in cash. Moreover, 5 new investors, Aviva Investors (€11 million), Amundi Groupe (€4 million), SCOR Global Investments (€2 million), Dr Antonio Ligresti (€10 million) and Jacques Veyrat (€1 million) have committed to participate in the Offering for a total amount of €28 million, ie 64.2% of the gross amount of the Offering (excluding exercise of the Extension Clause and Overallotment Option.
The final IPO price was set at €21.30 per share (mid-point of range). Institutional investors have been allocated 2,373,853 shares, i.e. 87.7 % ofthe total number of shares. After the IPO, the number of shares will be 9,624,889 (10,923,489 shares on a fully diluted basis).
Gross proceeds of the Offering: Approximately €43,6 million for a 100% capital increase subscription, which could be increased to approximately €50,1 million in the event the Extension clause is fully utilized and to approximately €57,7 million in the event the Extension clause and the Overallotment Option are fully utilized (based on a price at the midpoint of the indicative price range of the Offering, equivalent to €21.3 per share). The proceeds include €2 million of debt offset.
Net proceeds of the Offering: Approximately €41,0 million for a 100% capital increase subscription, which could be increased to approximately €47,3 million in the event the Extension Clause is fully utilized and to approximately €54,5 million in the event the Extension Clause and the Overallotment Option are fully utilized, based on a price at the midpoint of the indicative price range of the Offering, equivalent to €21,3 per share. The proceeds include a €2 million of debt offset.
Therapeutic area: Infectious diseases
