Neovacs announces IPO
Paris – Despite limited IPO prospects for biotech in general, French Neovacs S.A. said it will raise EUR20 million on the Alternext Exchange of Euronext in Paris. The developer of cytokine inhibiting immunotherapeutics will offer 3.9 million new shares from a capital increase or 27.46 percent of its capital between EUR5.2 and EUR6.0 per share. The exercise of a greenshoe option could raise the issue size to 26.4 million euros, handing 36.3 percent of the group's capital to the public. Truffle Capital, Novartis Venture Fund and OTC Asset Management currently own a combined 73 percent of the capital. Neovacs develops immunotherapeutics based on a specific protein-coupled inactivated cytokines plus adjuvans that induce a polyclonal antibody response of the immune system against cytokines that cause disease when overexpressed. The company's Phase Ib immunotherapy program TNF-alpha Kinoid targets Tumor Necrosis factor in Crohn’s disease and the company has also started a Phase II trial in rheumatoid arthritis. A second product candidate is IFN-alpha Kinoid, an immunotherapy that targets interferon alpha in patients suffering from Lupus erythematosus.