(CercleFinance.com) – With gains of 33%, Néovacs shares topped the biggest gains on the Paris market on Monday, boosted by the prospect of a major contract for its subsidiary Pharnext.
In a press release, the biotech estimates that the receipt by Pharnext of two offers valuing its drug candidate in Charcot’s disease at more than 250 million euros validates its investment strategy.
In spring 2020, Néovacs unveiled a new strategic roadmap based on the continuation of internal research programs and the implementation of an investment policy in other companies in the sector.
Néovacs – which judges that Pharnext constitutes by far its most promising investment with a stake of 21 million euros – recalls that it could receive remuneration indexed to the proceeds of the sale reaching 15% of its amount or to the income of a license (also 15%).
In addition, Néovacs has share subscription warrants allowing it, from the beginning of 2024, to take up to 30% of the capital of Pharnext for an additional investment of 20 million euros.
Based on a financial analysis published by research firm Edison, the total value of Pharnext’s assets is now estimated at €214 million.
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