Kinarus secures CHF20 million to accelerate clinical development

KIN001 is in clinical tests in three indications. Kinarus has received regulatory authorization to initiate Phase 2 testing in wet age-related macular degeneration ("wet AMD") of KIN001, which has been shown to reduce pathological blood vessel growth (neovascularization) in the choroid of the eye in preclinical models of wet AMD. KIN001 is currently being investigated in the “KINETIC” Phase 2 trial in patients hospitalized with COVID-19 and a separate Phase 2 study in ambulatory patients with SARS-CoV-2 infection (“KINFAST”) has been approved by regulators. A Phase 2 trial of KIN001 in patients with idiopathic pulmonary fibrosis ("IPF") is also in preparation.

Under the terms of the agreement, Yorkville undertakes to purchase loan notes convertible into Kinarus shares in a total nominal amount of up to CHF 20 million over the next 36 months. Kinarus may, at its own discretion, issue the next tranche of convertible notes to Yorkville subject to certain conditions.

The unsecured convertible notes each have a term of 6 months and are convertible into Kinarus shares during the term by the holder of the convertible notes. The conversion price shall be determined as the lower of (i) 120% of the volume-weighted 10-day trading price of the Kinarus shares prior to Kinarus’ decision to issue the convertible notes, or (ii) 92% of the lowest daily volume-weighted 10-day trading price of the Kinarus shares prior to conversion. Interest is paid at an annual rate of 4% during the term of the notes.

“We are pleased to conclude this agreement with Yorkville, which will provide expanded options for financing Kinarus’ drug development projects, during this time of financial market turbulence,” said Alexander Bausch, PhD, CEO of Kinarus. “KIN001 is making strong progress, and we are looking forward to reporting interim data from KINETIC at the end of Q3 2022, starting KINFAST and expanding our clinical development programs to two additional Phase 2 trials for wet age-related macular degeneration and idiopathic pulmonary fibrosis.”

KIN001 is a proprietary patented combination of pamapimod, a highly selective investigational small molecule inhibitor of p38 mitogen-activated protein kinase (p38 MAPK), and pioglitazone, a marketed drug for the treatment of type 2 diabetes.

(Press release / SK)