RE: Markku has been quiet of late11 Aug 2022 09:17
Faron has announced that it is recruiting staff for its US office in Boston. In addition to clinical research staff, the company has also recruited IR staff. Indeed, the company's management has mentioned an IPO in the US as one possibility for financing the company.
In addition, the company has the possibility of seeking funding from its existing marketplaces on the London AIM and Nasdaq First North. The company said that in summer 2022, it had arranged a directed issue of EUR 5 MEUR, which we understand will cover one third of the EUR 15 MEUR required by the loan agreement. We estimate that Faron will seek to raise the remaining 10 MEUR under the terms of the loan through a share issue between Q3'22-Q1'23. If the offering is completed, we estimate that the offering will be executed at a discount of around 10%. The latest offering was completed at the market price.
A third potential source of funding for the company is global or regional collaboration agreements with large pharmaceutical companies. We believe this would be relevant for Phase II/III trials, where the partner would bear part of the cost of the trial and, once the drug is on the market, would handle its sales, marketing and distribution. Faron's first Phase II/III trial is MATINS, which is investigating the efficacy of BEX as a monotherapy in patients with end-stage cancer. We consider a collaboration agreement on MATINS to be possible.
However, we believe that the more likely subject of a collaboration agreement is the late-stage BEXCOMBO study (BEX combined with PD-1 inhibitor). Similarly, we see strong potential for an agreement in the next phases of BEXMAB (BEX combined with standard therapy) and BEXLUNG (BEX combined with PD-1 inhibitor).
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