Néovacs has made a significant commitment to increase its funding for the upcoming pivotal Phase III clinical trial of PXT3003, a potential treatment for Charcot-Marie-Tooth Disease Type 1A (CMT1A). The company has also welcomed Hugo Brugière as Chairman and CEO and established an ad hoc committee to explore potential strategic partnerships that could realize the company’s full potential.
Increase in the funding commitment of Néovacs
To ensure that Pharnext can fund the successful completion of the pivotal Phase III clinical study for PXT3003, an innovative drug candidate developed to treat CMT1A, Néovacs has agreed to provide up to an additional €2 million per month until the end of 2023. This financial support will ensure the 12-month liquidity risk is covered and that Pharnext can reach its goal of bringing PXT3003 to market.
In October 2022, Néovacs and Pharnext signed a financing agreement worth €20.7 million, with Néovacs becoming a key shareholder of Pharnext as of January 1, 2024. This agreement included the issuance of several tranches of simple bonds with warrants. With this agreement, the two companies have taken a big step towards a brighter future.
Pharnext SA and Global Tech Opportunities 13 (GTO 13) have entered into a financing agreement, which supplements the OCEANE-BSA financing granted by GTO 13. Under the agreement, GTO 13 will provide a cash subscription for tranches of OCEANE-BSAs for a total amount of €26 million, with a net amount of €2 million each month from December 2022 to December 2023.
Pharnext’s market capitalization must remain above €2 million over the ten days prior to the payment of each tranche, and GTO 13’s holding of Pharnext securities must not exceed 400% of the market capitalization as a result of the payment of the tranche. Unfortunately, the GTO 13 Investment Committee declined the disbursement of the 12th tranche of €2 million planned for the end of December 2022 due to the conditions not being met; however, Néovacs, through the trust managing its financing contract with Pharnext, has agreed to subscribe to the €1 million tranche scheduled for late December.
Néovacs has committed to a cash injection of up to €2 million by the end of January, to make up for the non-drawing of the 12th tranche. This contribution will be made in the form of a current-account contribution of associates, and the terms of this agreement are currently being studied. Pharnext is keen to re-engage the financing agreement with GTO 13 as soon as the conditions are met again.
In tandem, Pharnext and GTO 13 have opened talks with the aim of settling their past agreements, should they succeed in signing an agreement with a strategic industrial partner.
Appointment of Hugo Brugière as Chairman and Chief Executive Officer
The Board of Directors of Pharnext have appointed Hugo Brugière as their new Chairman and Chief Executive Officer, demonstrating their strong commitment to the company. Joshua Schafer, who has served as Chairman and CEO of Pharnext since its inception, will remain a Director of the Company.
Hugo is a renowned serial entrepreneur and alumnus of two premier institutions, the Saint-Cyr Special Military School and Sciences Po Paris. With more than two decades of experience in stock market and restructuring/turnarounds for listed companies, Hugo currently serves as an executive for some of the most successful firms in the industry, such as Boostheat, Cybergun, Néovacs, Verney-Carron, HBR Investment Group, and Dionae Investment. His track record speaks for itself—all of these companies are listed on Euronext in Paris.
Hugo Brugière is committed to continuing the advancement of the Company and the development of PXT3003, which is currently in its pivotal Phase III clinical study for CMT1A patients (PREMIER trial) with results expected in Q4 2023. He is focused on optimizing the operational structure and investments to ensure a steady cash flow and the necessary financing for the project.
Search for a strategic industrial partner
Néovacs has ramped up its support for Pharnext to help the company find a strategic industrial partner and maximize its assets and commercial potential. With positive results from their current study, Pharnext is on track to submit a marketing authorization application for the treatment of CMT1A to the FDA in the US and the EMA in Europe.
Pharnext is currently exploring a potential capital transaction that could result in a takeover of the Company. To that end, Pharnext is in talks with a major player in the pharmaceutical industry to reach an agreement that would benefit both parties.
In order to identify its intrinsic value and target price, Pharnext is taking the proactive step of commissioning an independent financial analysis from a reputable research firm. This will ensure that the company is able to make informed decisions and maximize its potential.
With the support of Néovacs, Pharnext is now on the right track to turn the page on convertible bond financing and find a leading industrial partner. This partner will have the potential to enable the Company to receive marketing authorization for their innovative treatment, PXT3003 in CMT1A, and launch its commercialization as soon as possible. Hugo Bruguière, Chairman and Chief Executive Officer of Pharnext, believes that the Company has the greatest potential amongst French biotech companies, and is very optimistic about the future. Pharnext will inform the market of any progress in respect of its financial communication obligations and of any confidentiality agreements signed with potential partners.
Pharnext is a pioneering biopharmaceutical company making groundbreaking strides in the development of novel therapeutics for the treatment of neurodegenerative diseases. Its lead products, PXT3003 and PXT864, have respectively completed an international Phase III trial with positive topline results and generated encouraging Phase II results in Alzheimer’s disease. Both assets have been granted orphan drug status in the US and Europe, and Pharnext is currently conducting the pivotal Phase III PREMIER trial of PXT3003 in CMT1A. The company’s Pleotherapy™ R&D approach has revolutionized the industry, and investors are advised to carefully consider the financial and other risks associated with investing in Pharnext.