Noxxon announces launch of capital increase right issue for an amount of up to € 3.9 m

(PresseBox) ( Berlin, )
CEST - NOXXON Pharma N.V. (Euronext Growth Paris: ALNOX, the “Company”), a biotechnology company focused on improving cancer treatments by targeting the tumor microenvironment (TME), hereby announces today the launch and terms of a share capital increase with shareholders’ preferential rights for an amount of up to € 3.9 million (issue premium included) (the “Rights Issue”).

Subscription ratio: 3 New Shares for 5 subscription rights presented

Subscription price: € 0.65 per share (15.7% discount on the closing price on the day before the decision of the Board of Directors on this transaction – June 24, 2019)

Each shareholder on June 28 at closing will receive 1 right per share held to subscribe in preference to the transaction

Rights trading period: from July 1 to 15, 2019 (inclusive)

Subscription period: from July 3 to 17, 2019 (inclusive)

Based on the additional funds provided by this right issue, the Company could finance its clinical pipeline independently for the next 12 months.

NOXXON has translated a validated RNA-based platform into two clinical-stage drug candidates addressing critical molecular pathways to treat solid tumors:

- NOX-A12: Targeting the adaptive immune system through the chemokine CXCL12, key player in the tumor microenvironment

Compelling activity and safety data from the Phase 1/2 anti-PD-1 (pembrolizumab) combo trial in metastatic, microsatellite-stable colorectal and pancreatic cancer, collaboration with Merck & Co./MSD
Company primed to start 1st line treatment in brain cancer trial combining NOX-A12 and radiotherapy in Q3 2019

The NOX-A12 and NOX-E36 are also currently the subject of 15 ongoing academic collaborations. In addition, as disclosed on Monday June 24, 2019, a leading international pharmaceutical company amongst the top-10 pharmaceutical companies by worldwide revenue is testing NOX-A12 in a new indication, which will remain undisclosed for competitive reasons. The market for this new indication has been valued at more than a billion Euros.

- NOX-E36: Complementary mechanism of action targeting the innate immune system through the chemokine CCL2 involved in the recruitment of immuno-suppressive tumor associated macrophages

Established safety and on-target activity in multiple non-oncology clinical trials
Preclinical data showing monotherapy activity in solid tumors

The pipeline addresses solid tumors with significant unmet medical needs despite the advances of immune-oncology and targeted therapies using a unique tumor microenvironment approach.

NOX-A12 consistently triggered an immune response in tumor tissue above a certain threshold of target neutralization in both pancreatic and colorectal cancer tissue. In heavily pretreated patients the combination of NOX-A12 + Keytruda® yielded 25% stable disease and 35% with longer time on treatment than prior therapy. Overall survival for these patients compared favorably with that of approved drugs with 48% at 6 months and 33% at 12 months. NOXXON has designed subsequent trials that could lead to approval and would initiate such studies with the support of a pharma partner. The combination of NOX-A12 with radiotherapy in a relevant brain cancer preclinical model showed 100% complete responses of which 66% were durable. The upcoming clinical study would assess the safety and efficacy of multiple doses of NOX-A12 combined with radiotherapy in first line brain cancer patients. Subsequent studies may target other brain cancer populations including rare pediatric indications where there is potential both for breakthrough status and other regulatory advantages.

The proceeds of the capital increase would be allocated 60% to advancing the Company’s pipeline, including initiation of the NOX-A12 and radiotherapy trial in brain cancer and completion of patient followup from the pancreatic and colorectal cancer trial, as well as for further preclinical work on the NOX-E36 molecule. The remaining funds would be dedicated to finance the Company’s other operating expenses including general and administrative costs. 

In case the transaction is not fully subscribed, it should be noted that NOXXON:
- has issued warrants to Acuitas, Yorkville and Kreos, that could bring complementary cash to the Company in case they would be exercised by their owners.
- expects to be able to sign out-licensing or co-development partnerships with top pharma groups, obtaining upfronts or milestones payments by licensing its proprietary molecules NOX-A12 and NOX-E36.

As at the date of publication of the current press release, the Company anticipates its cash needs for the next 12 months to be covered based on the present capital increase, under the conditions and the
limits stated above.

“We are encouraged by the recent demonstrated interest in NOXXON’s compounds from pharma companies and are confident that we will be able to secure additional partnerships. Securing these funds will provide the company with additional leverage in these negotiations,” said Aram Mangasarian, CEO of NOXXON.

For more detailed information please see the annex of this press release.
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