The biopharmaceutical company has signed a loan agreement with the European Investment Bank. The funds will allow Lysogene to finance its work, in particular in the treatment of Landing’s disease and fragile X syndrome. The stock has climbed nearly 15% early in the morning.
Lysogene receives a European loan of 15 million euros | Photo credits: Lysogen
Excellent news for Lysogene, greeted on the stock market by a jump of nearly 15% of the share early in the morning. The company specializing in the research and development of gene therapies for the treatment of rare neurodegenerative diseases has unveiled a loan agreement with the European Investment Bank (EIB). The envelope could go up to 15 million euros, subject to conditions to be met. That’s almost half of the company’s market capitalization (36 million euros).
These funds will be used to develop the Company’s major drug candidates, LYS-GM101 for the treatment of GM1 gangliosidosis and LYS-FXS01 in fragile X syndrome, the first soon to be in Phase I / II clinical trial. and the second will soon be tested in the preclinical phase.
Rare diseases
GM1 gangliosidosis, or Landing’s disease, is a rare, inherited, neurodegenerative lysosomal overload disease characterized by severe delays in cognitive and motor development. It affects one newborn in 100,000 to 200,000 births. There are around 2,000 cases worldwide.
Fragile X Syndrome (FXS) is the most common hereditary cause of autism spectrum disorders, affecting approximately one in 4,000 to 5,000 boys and one in 8,000 girls. It is estimated to affect around 110,000 people in Europe and around 70,000 people in the United States.
First tranche of 3 million euros
Lysogene will be able to draw unconditionally a first tranche of 3 million euros. Two more are planned: a second of 5 million euros and a third of 7 million. They will be made available upon achievement of predefined objectives. Also, an agreement to issue warrants for the benefit of the EIB completes the loan contract.
Stéphane Durant des Aulnois, administrative and financial director of Lysogene showed himself “ very grateful for the support and trust shown by the EIB ”Before recalling that provided by Bpifrance in November, to the tune of 4.3 million euros. These funding ” demonstrate the merits of Lysogen’s long-term strategy to become a technological platform for the development of gene therapy products, from early research to clinical stage “.
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