Edison Investment Research - Pharnext SA (ALPHA) Pharnext - Neovacs €2.5m loan part of a potential larger deal

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Edison Investment Research

Sean Conroy

Pharnext - Neovacs €2.5m loan part of a potential larger deal

Pharnext announced that it has signed a €2.5m short-term bridge loan agreement with the French biotechnology company Neovacs (ALNEV). The loan has a six-month maturity and will carry an interest rate of 1% per month. The current loan is part of ongoing discussions between Pharnext and Neovacs to potentially enter into a broader financing agreement. As a reminder, in June 2022, Pharnext had raised another €12.0m in short-term, fixed-rate financing from Global Tech Opportunities 13, a member of the Alpha Blue Ocean (ABO) group, proceeds from which were to be used in part to pay off €8.0m in venture debt obligations to IPF Partners (raised in 2018), releasing Pharnext from the restrictive covenants requiring it to maintain a €8.0m cash balance. If talks progress with Neovacs, we expect the new deal to replace this fixed-rate ABO loan. We await more information before updating our estimates.

23/08/2022 1 EN

Underlying

Pharnext SA

Pharnext SA is a France-based biopharmaceutical company. The Company is focused on discovering, developing and licensing new therapeutic solutions (Pleodrugs) and companion tests for unmet medical needs (large and niche markets) by using the Pleotherapy approach. Pharnext SA runs all its own activities, from research through to clinical development (no further than the end of Phase II trials), and then licenses the Pleodrugs to industrial partners. The Company's prime focus is on neurodegenerative diseases and metabolic diseases.

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FR0011191287 Euronext Paris France

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Sean Conroy

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Pharnext - Neovacs €2.5m loan part of a potential larger deal

Pharnext - Termination of coverage

Pharnext - Potential licensing deals could add confidence

Pharnext - Improving FY23 financial footing

Record - AUME momentum and a sharper focus

Actinogen Medical - Funding in place through key catalysts

Henderson Opportunities Trust - A differentiated exposure to smaller companies

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