Biotech
Dijon Biotech Company Inventiva Raises 348 Million to Complete Its Phase III
Inventiva’s stock surged over 80% on news of phase III trial financing for lanifibranor, targeting NASH liver disease. The €94.1 million initial funding will support trials through 2026, with additional funds staged upon progress. Leading investors include New Enterprise Associates and BVF Partners. Inventiva’s record-breaking fundraising mirrors Amolyt Pharma’s 2023 success and potential acquisition prospects.
Inventiva, a Dijon biotech company, had raised fears of the worst, with its cash flow almost completely dried up, in a gloomy global context for financing life sciences. And Inventiva has done better than just push back the deadline by a few months. The biotech company has raised a potential of nearly €348 million, divided into several tranches, an exceptional fundraising in the French healthtech landscape (for comparison, the record set by Amolyt Pharma for 2023 was €130 million).
A move welcomed on the stock market, since the share price took off by more than 80% this morning on the Euronext market. Enough to hope to successfully complete its phase III trial evaluating its small molecule, lanifibranor, against MASH (formerly NASH), this metabolic disease which results in an excess of fat in the liver and fibrosis which can lead to its dysfunction.
Inventiva has started a long-term phase III trial on more than 1,100 patients, which is therefore particularly cash-intensive, with results expected in the second half of 2026.
Financing for Inventiva in several stages
In the meantime, Inventiva will be able to count on the different tranches of its financing, which will be done sequentially. In detail, the funds come from two main sources. The biotech company will have immediate financing of €94.1 million, in the form of new share issues. It has also obtained commitments from investors to subsequently carry out a second and third capital increase (respectively of €21 and €116 million), provided that no unforeseen event disrupts its phase III trial and that it takes place within the planned timeframe.
The third tranche may also be increased by an additional €116 million, depending on the success of this phase III trial. The financing was led by New Enterprise Associates, BVF Partners LP and Samsara BioCapital, with participation from existing and new investors, including Andera Partners, Deep Track Capital, Eventide Asset Management, Great Point Partner and Invus.
Additional participation from CCTQ
In addition, Inventiva has reviewed its agreement with CCTQ (Chia Tai-Tianqing Pharmaceutical), which owns Sino Biopharm with which a marketing agreement for the Chinese market had been signed, in 2022. Depending on the progress of Inventiva’s financing plan, CCTQ will invest an additional $10 million per tranche raised, for a total of $30 million potentially.
As is often the case, this financing operation is accompanied by changes in the biotech’s board of directors. Mark Pruzanski thus arrives as president and Srinivas Akkaraju as director. Four additional directors can be appointed by each of the four main investors.
With this large-scale financing, Inventiva is undoubtedly signing the largest fundraising of 2024. And will undoubtedly hope for the same success as Amolyt Pharma which, after having achieved the largest fundraising in 2023, was bought by AstraZeneca for a billion dollars last March.
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(Featured image by Marek Studzinski via Unsplash)
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