NicOx SA today (25 November) announced the launch of a rights issue of approximately €70m.
This financing supports NicOx’s strategic goal of becoming a fully-integrated specialty pharmaceutical company with targeted specialty sales operations in the United States (US) and innovative research and development (R&D) programs.
This rights issue follows the successful completion of a E30 million private placement on 18 November 2009.
That private placement was oversubscribed and NicOx decided to offer the maximum number of authorised shares to institutional investors, including a cornerstone €20m investment by the Fonds Stratgique d’Investissement (FSI).
The FSI currently holds a 5.1% stake in NicOx. The FSI is a French corporation owned 51% by the Caisse des Depots et Consignations and 49% by the French government, which has the objective of supporting medium-sized companies that are considered important for the growth and competitive position of the French economy.
The FSI plans to invest a total of €25m (including the cornerstone €20m investment already made in the private placement).
The FSI has expressed its intention to fully subscribe to its rights and may subscribe for an additional amount on a reducible basis.
The existing Commercial Affairs Department in the US will be expanded to allow NicOx to participate in the future commercialisation of naproxcinod, NicOx’s lead drug candidate.
The New Drug Application (NDA) for naproxcinod was accepted for filing by the US Food and Drug Administration (FDA) on 18 November 2009.
The NDA is requesting an indication for the relief of the signs and symptoms of osteoarthritis.
NicOx plans to submit a Marketing Authorization Application (MAA) to the European Medicines Agency (EMEA) by the end of 2009.
“This capital raise aims to maximise the strategic and economic value of naproxcinod and support our overarching goal of building NicOx into a specialty pharmaceutical company with its own commercial operations focused on specialist prescribers in the United States,” Eric Castaldi, Chief Financial Officer of NicOx, said.
“With this sales and marketing platform, we will be ideally positioned to support a primary care focused partner for naproxcinod.
“The proceeds of this financing will also allow NicOx to optimize naproxcinod’s commercial supply chain and advance its promising clinical pipeline in ophthalmology and cardiometabolic diseases. We are very pleased that the FSI has decided to subscribe to this rights issue following their recent cornerstone investment in NicOx.”