Last close As at 05/08/2026
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Research: Healthcare
Pharnext announced that it has raised €12m in short-term, fixed-rate financing from Global Tech Opportunities 13, a member of the Alpha Blue Ocean group and the company’s convertible debt (OCEANE-BSA) holder. This refinancing will be used to pay off the outstanding €8m in venture debt obligations to IPF Partners (raised in 2018), releasing Pharnext from the restrictive covenants requiring it to maintain a €8m cash balance. Additionally, the funds will serve as an alternative source of financing for the dilutive drawdown of incremental convertible tranches. In light of this announcement, we are withdrawing our forecasts while we revisit our estimates and valuation.
Pharnext |
€12m loan to ease funding overhang |
Funding update |
Pharma and biotech |
10 June 2022 |
Share price performance
Business description
Analysts
Pharnext is a research client of Edison Investment Research Limited |
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Pharnext announced that it has raised €12m in short-term, fixed-rate financing from Global Tech Opportunities 13, a member of the Alpha Blue Ocean group and the company’s convertible debt (OCEANE-BSA) holder. This refinancing will be used to pay off the outstanding €8m in venture debt obligations to IPF Partners (raised in 2018), releasing Pharnext from the restrictive covenants requiring it to maintain a €8m cash balance. Additionally, the funds will serve as an alternative source of financing for the dilutive drawdown of incremental convertible tranches. In light of this announcement, we are withdrawing our forecasts while we revisit our estimates and valuation.
Year end |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
2.8 |
(21.4) |
(1.17) |
0.00 |
N/A |
N/A |
12/21 |
3.6 |
(30.6) |
(1.01) |
0.00 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The €12m fixed-rate loan with a 9.5% interest rate is anticipated to be disbursed in five instalments (the first is €3m, followed by two instalments of €2.5m and €2m each) from June 2022, and each instalment to be drawn down with at least a one-month gap in between. Pharnext has the flexibility to drawdown the debt between a four- to eight-month period ending February 2023. The repayment period ranges from four to 12 months following each disbursement. One of the key objectives of this new funding is to pay off the €8m venture debt obligations to IPF Partners (of a total €15m), which Pharnext raised in 2018 at a Euribor +11% interest rate. This prior debt agreement was negotiated to include a highly restrictive covenant requiring constant maintenance of a cash balance of €8m, thereby tying up valuable resources. The company’s cash balance of €8m at the end of FY21, along with the remaining proceeds from the new fixed-rate debt, should relieve the near-term funding overhang as it progresses its pivotal Phase III PREMIER trial to data readouts in Q423.
Pharnext also announced that it will be reinstating the initial terms of the June 2021 OCEANE-BSA agreement. As a reminder, the deal covered 35 tranches for total proceeds of €81m, which was truncated to 12 tranches in December 2021. While Pharnext has already utilised €36m of funds (across 11 tranches), the reinstatement means that it would be entitled to an incremental €45m in capital, should it choose to utilise this reinstated facility following completion of the fixed-loan agreement. While we expect the company to pursue alternate, non-dilutive options for future capital raising, the availability of the OCEAN-BSA funds provides management with options in case of contingencies. We will update our estimates to factor in these new developments.
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Research: Healthcare
Oryzon presented a 42-month update of its ongoing Phase IIa ALICE trial for the treatment of acute myeloid leukaemia (AML) in newly diagnosed elderly/unfit patients. The latest positive efficacy and safety data in the single-arm, open-label study follows what has been a consistent trend of encouraging data readouts from this fully enrolled study. The study is currently evaluating the objective response (OR) in patients treated with LSD1 inhibitor iadademstat in combination with standard of care chemotherapy azacitidine in a front-line setting. Of the 27 evaluable patients, 22 (81%) achieved an OR significantly higher than that of azacitidine monotherapy, which achieves OR rates of c 30%. We will revisit our estimates and valuation based on the recent updates reported by Oryzon on iadademstat.