Biom’up, a specialist in surgical hemostasis, announces the success of its private placement financing of €7.67 million through a capital increase by the issuance of new shares without preferential subscription rights for the benefit of a category of beneficiaries (the “Offering“). The Company sold 1,597,332 new shares at a price of €4.80 per share, representing a discount of approx. 2% to the closing share price on December 5, 2018 (€4.90 per share). The Offering represents 12.61% of the Company’s existing share capital.
The net proceeds of the Offering will allow the Company to finance the continuation and ramp up of clinical development for HEMOBLASTTM Bellows in abdominoplasty surgery, knee surgery and spinal surgery, the continuing expenditures for the construction of the new production plant near the existing site, and the ongoing efforts relating to the HEMOBLAST Bellows commercialization in the United States and Europe (sales force deployment, ramping up efforts devoted to marketing and training practitioners) along with the Company’s ordinary operating activities.
Etienne Binant, Biom’up’s Chief Executive Officer, commented: I would like to sincerely thank all the investors who made this raise a success and in particular Arbevel et Athyrium who are once again demonstrating their trust in the Company. In the context of challenging financial market conditions, being able to execute such a transaction further testifies to investor confidence in our positioning and business model. These funds will now reinforce our cash position and allow us to continue the clinical development of HEMOBLAST Bellows and its commercialization, as well as associated means of production.
HEMOBLAST Bellows is a hemostatic product to control bleeding in a broad range of surgical procedures, such as cardiac surgery, general surgery, and orthopedic surgery, etc. Biom’up conducted a successful clinical trial in the United States with 412 patients admitted to cardio-thoracic, abdominal or orthopedic (lower limb) surgeries which met all of its primary and secondary endpoints. Given the compelling preliminary results (93% effectiveness at 6 minutes, compared with 74% for the control arm), the Independent Data Monitoring Committee (IDMC) unanimously recommended to stop the study after an interim analysis of the data, which allowed the company to accelerate the submission of its filing for premarket approval (PMA) to regulatory authorities in June 2017.
After obtaining expedited FDA approval for HEMOBLAST Bellows in December 2017, 7 months ahead of original plan, Biom’up’s efforts are focused on industrial and commercial activities and the recruitment of sales and marketing teams in the U.S. to prepare the planned commercial roll-out of our lead product in the United States.
On July 12, 2018, Biom’up obtained CE Marking for its HEMOBLAST Bellows Laparoscopic Applicator designed to deliver the HEMOBLAST Bellows powder in minimally-invasive procedures. This has opened the way for the Company in a new market segment representing approximately 500,000 surgeries per year in Europe. In addition, on July 2, 2018 the Company filed a PMA supplement to obtain approval for HEMOBLAST Bellows for all laparoscopic surgical procedures in the United States.
Founded in 2005 and based in the Lyon suburb of Saint-Priest (France), Biom’up designs hemostatic products based on patented biopolymers that aim to simplify surgical procedures in numerous specialties (spine, cardiothoracic, general, orthopedic, plastic) and give patients a better quality of life.
Since its creation, Biom’up has benefited from the support of prominent European investors such as Bpifrance, Innobio, Gimv, Lundbeckfond, Mérieux Participation, SHAM and ACG, as well as all the company’s managers, who have invested €2 million in equity. Biom’up successfully completed its IPO on Euronext Paris, raising €42.5 million in October 2017. This has been followed by a €16 million capital increase in February 2018 and a €25 million bond financing agreement with Athyrium Opportunities III Acquisition LP, a US fund specializing in innovative companies in the healthcare sector, in March 2018.