NEOVACS: PHARNEXT STRENGTHENS ITS TIES WITH NEOVACS TO ENSURE THE NEXT STEPS OF ITS DEVELOPMENT – 2022-12-28 at 20:00


Paris, December 28, 2022 – 8:00 p.m. CET – Neovacs (Euronext Growth Paris: ALNEV), a French biotechnology company specializing in therapeutic vaccines targeting the treatment of autoimmune diseases and the support of promising BioTech and MedTech, announces today a series of decisions aimed at ensuring the next steps in the development of Pharnext (FR001400BV89 – ALPHA), an advanced clinical stage biopharmaceutical company developing new therapies for neurodegenerative diseases without a satisfactory therapeutic solution, in the extension of the financing agreement and strategic support program for Pharnext announced on October 4, 2022
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Increase in Pharnext’s financing commitment by Neovacs

In order to cover Pharnext’s financial needs until the first results of the pivotal Phase III clinical study PREMIER evaluating the drug candidate PXT3003 in CMT1A and to cover the possible liquidity risk at 12 months, Neovacs undertakes to strengthen its financial support of up to an additional €2 million per month by the end of 2023.

This extension comes in addition to the financing agreement signed in October 2022 with Néovacs, for a net amount of 20.7 million euros, via the issue in several tranches of simple bonds accompanied by warrants for shares. At the end of this agreement, Néovacs could become a reference shareholder of Pharnext from 1

er

January 2024.

This new financing agreement comes as a partial or total supplement to the financing in the form of OCEANE-BSA granted by Global Tech Opportunities 13 (“GTO 13”) to Pharnext. As a reminder, Pharnext and GTO 13 have entered into a warrant issue and subscription agreement giving access to bonds convertible or exchangeable into new and/or existing shares with share subscription warrants attached on June 4, 2021. According to this contract, as subsequently amended and detailed in the press release of October 4, 2022, GTO 13 has undertaken to subscribe in cash for tranches of OCEANE-BSA for a net amount of 2 million euros per month, at from December 2022 until December 2023 inclusive (i.e. thirteen tranches for a maximum total of €26 million).

The subscription commitment for each tranche is subject to certain conditions (including, in addition to certain usual conditions, a market capitalization condition of at least 2 million euros from Pharnext for a period of 10 days prior to the payment of each tranche and a of Pharnext securities by GTO 13 for a total amount less than 400% of the market capitalization at the result of the payment of the tranche). The investment committee of GTO 13 did not approve the disbursement of the 12

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tranche of 2 million euros, scheduled for the end of December 2022, noting that these preconditions have not been met. However, Néovacs, through the trust that manages its financing contract with Pharnext, has for its part agreed to subscribe to the tranche of 1 million euros scheduled for the end of December.

In this context, Néovacs has undertaken to compensate for the lack of drawdown of the 12

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tranche with a cash injection of up to 2 million euros by the end of January. This contribution will be the subject of a contribution in current account of partners according to methods which remain to be defined according to the real needs for the month of January, which are currently under study. Pharnext plans to use the financing agreement entered into with GTO 13 again once the conditions precedent are once again met.

At the same time, Pharnext and GTO 13 have entered into discussions with a view to amicably terminating their previous agreements in the event of signing an agreement with a strategic industrial partner (see below).

Appointment of Hugo Brugière as Chairman and Chief Executive Officer

In order to mark Néovacs’ strong commitment, the Board of Directors of Pharnext decided, unanimously among its members, to appoint Hugo Brugière as Chairman and Chief Executive Officer, replacing Joshua Schafer who remains a Director of the society.

Hugo Brugière will ensure the continuity of the development of the Company and of the PXT3003 product which is currently the subject of a pivotal Phase III clinical study in patients with CMT1A, the PREMIER study, the results of which are expected on the 4

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quarter of 2023. In particular, it will ensure the optimization of the operational structure and investments in order to control cash flows and the associated financing needs.

Search for a strategic industrial partner

This enhanced support from Neovacs is intended to enable Pharnext to embark on a serene search for a strategic industrial partner at a time when the Board of Directors considers that the Company has reached a sufficient degree of maturity to enhance the value of its assets. and its commercial potential. Indeed, if the first results of the current study are positive, they will form the basis of a marketing authorization application file for the treatment of CMT1A with the FDA in the United States and the EMA in Europe.

This valuation could be done as part of a capital transaction that could ultimately lead to a takeover of the Company. Pharnext currently favors an agreement with a player in the pharmaceutical industry.

In order to optimize this research, the Board of Directors of Pharnext has decided to set up an ad hoc committee composed of Joshua Schafer, Director, James Kuo, Director, Rob Quinn, Chief Financial Officer, and Xavier Paoli, Chief Operating Officer. Joshua has led successful M&A deals in excess of $16 billion, James has raised multiple rounds of funding as CEO and led HealthCare Ventures, a $378 million venture capital fund , Rob has raised more than 200 million euros in funding to date and Xavier will bring his expertise in the commercial potential of PXT3003 after 9 years with the Company.

In this context, Pharnext has planned to have an independent financial analysis carried out by a recognized research firm in order to determine the intrinsic value and the target price objective.

Neovacs will inform the market of any progress in respecting its obligations in terms of financial communication and any confidentiality agreements signed with potential partners.

Hugo Brugière declares: “

Pharnext is one of the French BioTechs with the greatest potential today, in my opinion. It was unthinkable for the Society to find itself in difficulty and that is why we came to support it. Now is the time for Pharnext to turn the page on convertible bond financing and find a leading industrial partner that will allow it both to obtain marketing authorization for its treatment and also to launch its commercialization as soon as possible. I am convinced that Pharnext is now on the right track.

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ABOUT NEOVACS

Neovacs is a French biotechnology company, listed on Euronext Growth since 2010, specializing in therapeutic vaccines targeting the treatment of autoimmune diseases. Its innovative technology called Kinoid®, patented until 2038, and its new mRNA platform, patented until 2042, make it possible to induce a polyclonal immune response, applicable in several indications. Neovacs has completed promising preclinical work with another therapeutic vaccine, IL-4/IL-13 Kinoid, for the treatment of allergies. The ambition of this new mRNA approach is to accelerate the implementation of products, to enable patients to better tolerate a treatment that would be more effective, well tolerated and very flexible in its administration.

For more information :

www.neovacs.fr

Jérôme FABREGUETTES-LEIB

Investor Relations

[email protected]

01 53 67 36 78

Deborah SCHWARTZ

Financial Press Relations

[email protected]

01 53 67 36 35


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NEOVACS GIVES PHARNEXT FINANCING IN A NOMINAL AMOUNT OF 21.1 MEUR (OR APPROXIMATELY 20.7 MEUR NET) AND COULD EVENTUALLY BECOME A REFERENCE SHAREHOLDER


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Full and original press release in PDF format:

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