(CercleFinance.com) – GenSight Biologics announced on Friday that it had obtained a loan of 35 million euros from the European Investment Bank, which allows the action of the biopharmaceutical company to jump in Sotck exchange.
At 11:30 a.m., the title – which gained up to 17% – rose 15% in volumes already representing four times their daily average for the last four sessions.
In a press release, the company explains that it plans to use this financing to support the development of Lumevoq, until its possible marketing in Europe, scheduled for the end of 2023.
It is an experimental gene therapy aimed at treating Leber’s hereditary optic neuropathy (LHON), a rare blinding disease.
Ambroise Fayolle, Vice-President of the European Investment Bank, indicated that the EIB was “proud” to be able to finance a pioneering European biotech in the search for breakthrough solutions for patients suffering from neuro-ophthalmological diseases.
The credit agreement will bear a fixed annual interest rate of 2% for each of the three tranches of the loan, with a maturity of five years for each tranche.
The credit agreement will be supplemented by an agreement to be concluded for the issue of BSA for the benefit of the EIB, representing a potential dilution of around 2.4% of the current capital.
GenSight Biologics said in its earnings release last week that it was in the process of securing “minimally dilutive” funding.