Attgeno AB announces that a successful share issue was completed at midsummer 2022 and resulted in SEK 20 million to a valuation of SEK 378 million after the issue. The issue consists of SEK 15 million in a rights issue to existing owners and a directed new issue of SEK 5 million to the Swedish life science focused venture fund Eir Ventures.
The proceeds will be used for the continued clinical development of the drug candidate Supernitro including patient studies, regulatory interaction with the FDA and optimization of the manufacturing process to prepare for market readiness of the drug once approved. The lion’s share of the capital will be used for the clinical development program, including a recently launched phase 2 study in patients with pulmonary hypertension after heart surgery, and preparations for the next step thereafter. The goal is for the phase 2 study to confirm that Supernitro functions as an intravenous selective pulmonary vasodilator, an important milestone, and is aimed to be completed within 6-9 months. The reason for deviation from the shareholder’s preferential rights was to allow the Company to raise capital in a time and cost-effective manner and to attract a new high-quality investor.
“With the capital, and trust, that we now receive from previous and new investors, the company will be able to maintain a high pace in the development of the main product Supernitro. At the same time, we are building the organization in the company to meet the demands that future major clinical studies and more intensive interaction with the market will place, i.e. we are preparing to take the next step in the process of taking Supernitro to the patients,” says Per Agvald, CEO.
The current investors include Hadean Ventures, a life science specialist investor, and the Swedish fund Eir Ventures, which has a similar profile, is now joining them through the private placement, jointly providing a strong position for future capitalization.
“We invest in Attgeno as the company’s products can be part of the solution to a major problem in the care of our most seriously ill patients. Elevated pressure in the pulmonary circulation affects up to a third of everyone who is cared for in intensive care and causes significant excess mortality. Studies show that mortality in a number of conditions increases when the vessels in the lung contract and make it difficult for the right heart to maintain blood flow through the lungs. For example, a study by researchers at Karolinska Institutet where everyone who was admitted for intensive care at the New Karolinska Hospital during a period of the pandemic showed that mortality in the group that had developed pulmonary hypertension increased by about 600%,” says Stephan Christgau, PhD and Founding Partner at Eir Ventures Partners AB
We are delighted to continue to support Attgeno through this important and exciting phase advancing this pioneering therapy for the serious and often fatal condition of acute pulmonary hypertension, and we welcome Eir Ventures and other new investors in this joint mission,” comment Ingrid Teigland Akay, Managing Partner of Hadean Ventures and Attgeno board member.
The issue in brief:
- The Share issue generated SEK 20 million, by a Preferential share issue of SEK 15 million and a directed share issue of SEK 5 million.
- Enables the company to advance the clinical development program, in particular completing a phase II study in acute pulmonary hypertension.
- Strong support from current investor base, as well as new investor Eir Ventures.
- The subscription price, in both issue types, was set at SEK 350 generating an equity value (after the issue) of SEK 378 million.