GeNeuro closes €17.5 million private placement

GeNeuro‘s mission is to develop safe and effective treatments against neurological disorders and autoimmune diseases, such as multiple sclerosis. The pipeline includes temelimab, a humanized monoclonal antibody, which has completed a 270-patient Phase IIb clinical trial (CHANGE-MS) in multiple sclerosis.

“Successfully completing this private placement provides GeNeuro the means to complete the planned study of temelimab in multiple sclerosis (“MS”) patients with disability progression without relapses at the Karolinska Institutet / Academic Specialist Center in Stockholm, and to bring the new amyotrophic lateral sclerosis (“ALS”) antibody to an IND. GeNeuro has also enriched its shareholder base as Institut Mérieux and Eclosion2, who have supported the Company for over a decade, have been joined by other leading international investors.” said Jesús Martin-Garcia, CEO of GeNeuro.

GeNeuro intends to use the net proceeds of the offering to:

• Complete the clinical trial of temelimab in MS to be conducted with the Karolinska Institutet/Academic Specialist Center (ASC), Stockholm, Sweden, with results expected in H2 2021;
• Repay an outstanding €7.5m shareholder loan granted by GNEH to GeNeuro on December 20, 2018
• Advance the preclinical program of GNK301, an anti-HERV-K monoclonal antibody being developed for ALS, up to IND submission to the FDA, expected in H1 2021; and
• Cover the Company’s other pre-clinical programs and operating expenses, extending its financial visibility to mid-2022.

In the Offering, GNEH SAS, a subsidiary of Institut Mérieux and an existing shareholder of GeNeuro, has subscribed to 2,542,372 New Shares in cash and by way of set-off. As a result, following the Offering GNEH shall own 36% of the share capital and the voting rights of the company.

(Press release / SK)