(BFM Bourse) – The nano-medicine specialist announces that it is in negotiations with a world leader in the pharmaceutical industry for the development and marketing of NBTXR3, its flagship product. The title is making up for its delay after the announcement of 2022 results marked by an increase in losses and an explosion in cash consumption.
Fanfare weekend for Nanobiotix. After being reserved at the opening, the title of the pioneer of nano-medicine soars by 140%, at the gates of 4 euros in heavy trading volumes. More than 2.16 million shares have changed hands since this morning, representing 6.21% of the company’s capital on the Paris market.
This awakening of the title is to be put into perspective with the latest announcement from the company, which is decisive for its future. Nanobiotix announces that it has entered into “final contractual negotiations” with a “world leader in the pharmaceutical industry”, after an extensive period of discussions.
This new step follows an agreement on a non-binding term sheetie a letter of intent which has no contractual value and which is not binding on the parties, for the development and marketing of NBTXR3.
NBTXR3 is Nanobiotix’s flagship product in the field of oncology. It is administered by injecting nanoparticles into the tumor to locally concentrate the effect of X-rays. The product candidate’s physical mechanism of action is designed to induce tumor cell death in the injected tumor when activated by radiotherapy, subsequently triggering an adaptive immune response and anticancer long-term memory.
The company also specifies that the agreement in question remains subject, among other things, to the negotiation of a definitive contract and to the obtaining of the authorizations required internally by each of the two parties. At this preliminary stage of discussions, Nanobiotix did not wish to disclose the identity of its potential partner. The company will not communicate further on the negotiations in question, except in the event that it considers that it would be appropriate to make information public or that a definitive agreement would be signed.
The market is therefore showing its relief after these announcements. Last week, Nanobiotix had expressed its doubts about the continuity of its operation after having experienced a particularly difficult year 2022. Despite a marketing authorization in soft tissue sarcoma, the company has chosen not to commercialize the product yet. And this was reflected in the 2022 accounts, Nanobiotix not having recorded any turnover last year. And on the side, the company incurs large expenses to fund the development of its products and other clinical trials.
A crucial agreement
As of December 31, 2022, French biotech had 41.4 million euros in cash, cash equivalents and investments, compared to 83.9 million euros as of December 31, 2021. That is a division by two of this Rising. The company estimates that its cash and cash equivalents will allow it to finance its operations until the third quarter of 2023.
The situation is therefore complicated for Nanobiotix, which has also indicated that it is actively seeking additional funding through one or more new partnerships, “possible collaborative or strategic alliances”. If discussions are successful with the “world leader in the pharmaceutical industry” mentioned by Nanobiotix, the company will see its financial horizon lighten up a bit. Moreover, this is a condition imposed by the European Investment Bank (EIB) as part of the restructuring of a loan signed in 2018.
In September 2022, the French specialist in nano-medicine had indeed obtained a little flexibility from the EIB, which lowered the minimum cash required by 15 million euros until the end of July. A gesture that will be extended until the end of January 2024, if the company signs a development and commercial partnership by the end of July. And that’s the whole point of today’s announcement…
Sabrina Sadgui – ©2023 BFM Bourse
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