Abivax, a clinical-stage biotechnology company harnessing the immune system to develop novel treatments for inflammatory diseases, viral diseases and cancer, today announces the successful completion of a capital increase of EUR 28m, through the issuance of 1,620,370 new ordinary shares with a nominal value of EUR 0.01 each (the “New Shares“), representing 11.70% of its share capital after the capital increase (the “Capital Increase“), at a subscription price of EUR 17.28 per share (market price). Gross proceeds from the Capital Increase amount to EUR 27,999,993.60.
Reasons for the issuance and use of the proceeds
The gross proceeds from the transaction are EUR 27,999,993.60, which will be used, along with the recent non-dilutive financings, by the Company for:
- completion of the Phase 2b induction phase, pursuance of the maintenance phase and preparation of Phase 3 of ABX464 in ulcerative colitis (UC);
- completion of the Phase 2a induction phase and pursuance of the maintenance phase of ABX464 in rheumatoid arthritis (RA);
- completion of Phase 2b/3 of ABX464 in COVID-19 indication and preparation for regulatory filings, market access and commercialization, if clinical data are positive;
- preparation of Phase 2b/3 of ABX464 in Crohn’s disease (CD); and
- general corporate purposes.
The Company expects that the gross proceeds from the transaction will provide the Company with financial resources (cash runway) to fund its operations to Q4 2021, based on ongoing programs.
Prof. Hartmut J. Ehrlich, M.D., CEO of Abivax said: “We are very happy with the successful completion of Abivax’s capital increase of EUR 28m which will contribute to achieve a number of important value-creating milestones. In particular, we are looking forward to a favorable data read-out of the Phase 2b clinical study with ABX464 in ulcerative colitis, planned for Q2 2021, which would further strengthen our position for potential partnering discussions. At the same time, Abivax is pursuing its clinical development of ABX464 with the completion of the Phase 2a study in rheumatoid arthritis and the preparation of a pivotal Phase 2b/3 study in Crohn’s disease. In addition, enrollment in the Covid-19 trial with ABX464 is progressing well and, depending on the evolution of the pandemic, we are planning to have first top-line results in Q1 2021. We are very much looking forward to bringing these exciting, highly differentiated novel treatments with ABX464 to patients in need.”
Didier Blondel, CFO of Abivax, added: “Given the current market conditions, the capital increase of EUR 28m is a great success for the Company as well as for our existing shareholders as it was oversubscribed at market price with a limited dilution of 11.70%. In addition to our recent non-dilutive financings, it extends our cash runway until Q4 2021. We will make efficient and targeted use of these financial resources to accomplish our corporate goals and create value for our shareholders.”
