The Walloon biotech company Bone Therapeutics has secured financing of $12 million (€11 million) pending the launch of a capital increase when the markets are more favorable. This round of financing is a solid thorn in the side for Bone Therapeutics, which urgently needed to fill its coffers in order to be able to carry out its projects.
With an estimated “cash burn” of between $16.3 and $18.5 million (€15 and €17 million) for the current financial year and only $9.3 million (€8.6 million) in cash in its coffers at the end of 2019, the situation was becoming worrying for this biotech company specializing in orthopedics and bone diseases.
This extension, which will enable the company to continue its activities until the first quarter of 2021, consists of three components: bridging loans of $5.17 million (€4.75 million) granted by commercial banks and Sambrinvest subject to obtaining credit insurance, an equity contribution of $1.37 million (€1.26 million) by the shareholders and a private placement of convertible bonds for $5.43 million (€4.99 million) used as required.
Two clinical trials
With the funds raised, Bone Therapeutics intends to advance two clinical trials. One, in Phase III, involves JTA-004, a gel designed to treat people with osteoarthritis of the knee. Results from this lead product are expected in the second half of 2021.
The other concerns the phase IIb trial of Allob in patients with tibia fractures at risk of delayed healing. Here, data will have to wait until mid-2022.
“The coronavirus-induced situation has put most non-core clinical trials on hold to preserve capacity in hospitals around the world,” KBC Securities analysts said. “We estimate that the situation in hospitals won’t begin to return to normal until after the summer.”
Their value recommendation remains to be “kept” with an unchanged price target of $4.35 (€4). Kepler Cheuvreux is also advising the same, but with a target of $6.2 (€5.7).
Other biotech companies that have successfully closed financing rounds
In the space of a few days, several biotechs listed on Euronext Brussels such as Mithra, MDxHealth and Kiadis took advantage of the relative lull observed on the stock market to consolidate their financial position.
On Friday, April 24th, Mithra announced a financing agreement with LDA Capital guaranteeing it direct access to $54.3 million (€50 million). On April 27th, the Belgian-American biotech MDxHealth signaled its intention to raise $13.8 million (€12.7 million) via the issue of 20.1 million shares subscribed by MVM Partners, which, in the process, will become the reference shareholder.
The Dutch biotech company Kiadis concluded a private placement of $13 million (€12 million) relating to 7.5 million new shares at a unit price of $1.74 (€1.60) with an American investment fund specializing in healthcare. The investor will also receive 3.75 million warrants with an exercise price of $2.39 (€2.22). They can be exercised within 5 years. After the private placement of $13 million (€12 million), Kiadis’ cash will amount to $34.2 million (€31.5 million).
In November, Kiadis made an important strategic shift by abandoning the development of its flagship product ATIR 101, whose advantages over standard treatment no longer seemed so obvious.
It is now focusing on its natural killer (NK) cell therapy platform. The cash will be used, among other things, for the clinical development of K-NK002 (adjunctive therapy for blood cancer patients undergoing hematopoietic stem cell transplantation) and K-NK003 (treatment of acute myeloid leukemia).
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in L’Écho, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Fundstrat Global Analyst says Ethereum’s price will reach $10,500
Many assume that after a breakthrough, prices of $1,800 and more are quite possible. However, it should not be forgotten...
How to optimize your website for local search
It’s so crucial to focus your marketing efforts on getting local website traffic if you run a store-front business or...
European companies ahead of US in ESG ratings
Even before Directive No. 2014/95/EU on non-financial reporting went into effect in Europe, between 2011 and 2017, nearly two-thirds of...
An impressive number of fundraising campaigns to halt the pandemic were launched in Italy
Over $30.4 million (€25 million) for the Covid-19 emergency. This is how much has been raised through the main crowdfunding...
The digital transformation of the health sector must be based on innovation
Regarding the financing of these initiatives, Jorge Morillo, director of Institutional Relations and Digital Administration of SAP Spain, spoke about...