(AOF) – Medesis Pharma announces receipt of the judgment of the Montpellier Commercial Court granting it the opening, on September 29, 2023, of a safeguard procedure. This biotech developing drug candidates based on its proprietary technology for administering active ingredients in nano micelles orally, Aonys was ordered by the same court in May 2023 to pay 1.4 million euros to Bpifrance, under of the 4 financing contracts from 2008 to 2010, and she appealed at the beginning of July.
Despite existing disagreements with Bpifrance, Medesis Pharma says it is “ready to favor an agreement” with the public investment bank which intervenes to support French companies.
The safeguard procedure “can last up to twelve months” and “protects companies which are not in a state of cessation of payments in order to enable them to resolve their difficulties and continue their activities”. In the context of Medesis Pharma, this approach “leads to the temporary suspension of its financial and tax obligations”.
28 historical shareholders of Medesis Pharma have demonstrated their confidence and support by committing to bring into their current account the sum of approximately 400,000 euros “for the continuity of the activity and to promote the search for financing necessary for current developments “, and particularly its phase 2 clinical study on Nanolithium in the treatment of Alzheimer’s disease underway in 8 clinical investigation centers.
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Biotechs put to the test
These companies are suffering from a much less favorable economic cycle, which is reflected in particular by a drop in venture capital financing of start-ups. These companies are therefore obliged to carry out layoff plans. Added to this is a much more restrictive regulatory framework. First, in the United States, measures linked to the Inflation Reduction Act (IRA) could have a strong impact on the margins of stakeholders. Indeed, from 2026, the federal Medicare program will be able to renegotiate the price of drugs marketed for nine years (chemical) or 13 years (biological), with discounts that could range from 35 to 60% for biotechs. Likewise, in Europe, with the new drug regulations presented in Brussels in April, the duration of patent protection will be reduced if the innovative treatment is not marketed in all member countries within two years.