Abivax, a clinical-stage biotechnology company harnessing the immune system to develop treatments for inflammatory diseases, viral diseases and cancer, has obtained a €15 million non-dilutive debt financing from Kreos Capital, with an additional €5 million to be decided before 2020 year-end.
This financing comprises two tranches of €10 million and €5 million respectively, with the first tranche to be fully drawn immediately, and a second tranche to be drawn before 1 November, 2020. The loan is expected to extend Abivax’s cash runway until Q2 2021, before any potential revenues from corporate partnering or any future additional funding, preferably non-dilutive.
Professor Hartmut Ehrlich, MD, CEO of Abivax, says: “We are very happy about the decision of Kreos Capital to provide us with this non-dilutive loan, as it allows Abivax to keep executing on its priority clinical programs in chronic inflammatory diseases according to plan. We continue to focus on the ABX464 Phase 2b ulcerative colitis trial, with top-line results expected in Q2 2021, while the ABX464 Phase 2a study in rheumatoid arthritis is also progressing well. Furthermore, the financing will be used to advance the projects that are crucial for the future development of the Company, such as the preparation of the clinical Phase 3 in UC and the initiation of a pivotal Phase 2b/3 study in Crohn’s disease. In parallel, Abivax is taking all necessary steps to ramp-up manufacturing and to get ready for a potential commercialisation of ABX464 in Covid-19, subject to a positive outcome of the ongoing Phase 2b/3 trial, anticipated for early 2021. Abivax is focusing on the achievement of the upcoming clinical milestones in its core program in inflammation, while further assessing partnering opportunities.”
Didier Blondel, CFO of Abivax, says: “This non-dilutive €15 million loan from Kreos Capital, together with an additional €5 million loan option to be decided before the end of 2020, is an important step and in line with our plans to secure Abivax’s funding. Abivax’s cash runway is herewith extended from early 2021 until Q2 2021.We carry on exploring further financing opportunities that protect and further build shareholder value by respecting the following two principles: no dilution for existing shareholders as well as favourable financial conditions, as we just did with Kreos Capital.”