The exclusive license with Asahi Kasei Pharma to develop and commercialize apraglutide in Japan includes an upfront cash payment of $30 million, eligibility for up to $170 million of development and commercial milestones and royalties to double digit sales of apraglutide in Japan Loan facility established with Kreos Capital, a leading global growth lender to life science and healthcare companies, granting the company access to up to $75 million , with a minimum commitment of raising $10 million
BASEL, Switzerland, March 30, 2022 (GLOBE NEWSWIRE) — VectivBio Holding AG (“VectivBio”) (Nasdaq: VECT), a clinical-stage biopharmaceutical company pioneering new transformational treatments for severe rare diseases, announced today that “She has entered into two of the agreements that will strengthen the company’s balance sheet, strengthen the company’s operations and expand the commercial potential of apraglutide beyond VectivBio’s core markets in the US and EU. The two agreements, along with VectivBio’s cash and cash equivalents as of December 31, 2021 of $103 million, provide up to $220 million in working capital.
The Company has entered into an exclusive license agreement with Asahi Kasei Pharma Corporation (“Asahi Kasei Pharma”) to develop and commercialize apraglutide, a next-generation long-acting GLP-2 analog, for the treatment of short intestine with intestinal failure (SBS-IF), acute graft versus host disease (aGVHD) refractory to steroids and future indications in Japan. Under the terms of the agreement, VectivBio will receive an upfront cash payment of approximately $30 million (of which $5 million is Asahi Kasei Pharma’s first development cost-share installment) and eligibility for up to to approximately $170 million in milestone payments if certain development, regulatory and commercial events are met. VectivBio is also eligible to receive progressive double-digit royalties on sales of apraglutide in Japan. Asahi Kasei Pharma has the right to participate in the development of new indications and to direct and finance all development, registration and commercialization activities in Japan.
“We are delighted to partner with Asahi Kasei Pharma, a Japanese pharmaceutical industry leader with a proven track record in drug development, commercialization and global collaborations. This agreement accelerates the development of apraglutide in Japan, a key market outside of our main commercial strategy. Additionally, this validates apraglutide’s best-in-class or best-in-class potential in a range of gastrointestinal conditions and VectivBio’s ability to execute global development programs that include Asia,” said Luca Santarelli, MD. , Ph.D., founder and CEO of VectivBio. .
“We are delighted to enter into this agreement with VectivBio, whose expertise in identifying and developing new therapies to treat rare diseases makes them an attractive partner for Asahi Kasei Pharma. GLP-2 has a well-established mechanism for influencing gut health, protecting against damage, and regenerating the gastrointestinal tract, and the profile of apraglutide to date further suggests it may possess the best physiological properties. in its class compared to other GLP-2 agonists,” said Yoshikazu Aoki, Ph.D., President of Asahi Kasei Pharma.
VectivBio has also entered into a loan facility with Kreos Capital, a leading global growth lender to life science and healthcare companies, giving it access to a flexible loan facility of up to $75 million with a minimum required drawdown of $10 million.
“The combination of these two agreements gives us an increased option as we pursue our development priorities and continue to build our business into a global leader in rare diseases, extending our cash trail well beyond our primary enablers,” said said Luca Santarelli.
“This is an exciting time for VectivBio as the company progresses the clinical development of apraglutide. We are very pleased to support the Company in bringing a new treatment to market for patients with SBS-IF. We were very impressed with the team from the start and we look forward to supporting them in this adventure,” added Maurizio PetitBon, General Partner of Kreos Capital.
FY2021 Results and Business Update Conference Call
The Company will host a conference call to discuss 2021 results and provide a business update on Thursday, April 7, 2022 at 8:00 a.m. ET.
To participate in the call, please dial 855-307-5413 (domestic) or 929-517-0945 (international) and refer to conference ID 9892600. A webcast will be available under Events and Presentations in the Investors and media section of VectivBio. website at ir.vectivbio.com. An archived replay of the webcast will be available on VectivBio’s website approximately two hours after the conference call and will be available for 30 days after the conference call.
About VectivBio AG
VectivBio (Nasdaq: VECT) is a global clinical-stage biotechnology company focused on transforming and improving the lives of patients with serious rare diseases. The lead product candidate, apraglutide, is a next-generation long-acting synthetic GLP-2 analog being developed for a range of rare gastrointestinal diseases where GLP-2 may play a pivotal role in the treatment of disease pathophysiology, including short bowel syndrome with intestinal failure (SBS-IF) and acute graft versus host disease (aGVHD).
VectivBio is also advancing its modular small-molecule CoMET platform to treat a wide range of previously untreatable inherited metabolic diseases (IMDs). CoMET leverages innovative chemistry, based on a proprietary stabilized pantetheine backbone, to restore fundamental cellular metabolism in pediatric populations with IPD characterized by impaired energy metabolism caused by depletion of functional coenzyme A (” CoA”). Candidates from the CoMET platform are initially evaluated in methylmalonic acidemia (MMA), propionic acidemia (PA) and other organic acidemias.
About Asahi Kasei Pharma
In line with Asahi Kasei Pharma’s mission “To sincerely care for each individual life and solve their unmet medical needs with a wealth of ideas and sound science”, Asahi Kasei Pharma operates pharmaceutical and diagnostic businesses in the unit health care business of Asahi Kasei Grouper. For more information, please visit https://www.asahikasei-pharma.co.jp/en/.
About Kreos Capital
Kreos Capital is the leading provider of growth debt in Europe and Israel, supporting high growth companies at every stage of their life cycle. Kreos targets investments across all areas of the technology and healthcare sectors and to date has committed over €3.7 billion in more than 670 portfolio company transactions, across 17 countries. With more than $1.5 billion in funds under management, Kreos can invest between €2 million and €100 million per transaction in public and private companies at all stages.
Forward-looking statements are statements that are not historical facts. Words and phrases such as “expected”, “forward”, “will”, “could”, “could”, “stay”, “potential”, “prepare”, “planned”, “believe”, “plan” , “near future”, “belief”, “guidance” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding the Company’s plans regarding the use of funds from the credit facility with Kreos Capital and the outlook for its platform, as well as any upcoming data readings from its clinical trials. All such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond VectivBio’s control, which could cause actual results to differ materially from those expressed, implied or projected by the forward-looking statements. These risks and uncertainties include, but are not limited to: the impacts of the Russian-Ukrainian war and the ongoing COVID-19 pandemic, including interruptions or other adverse effects on clinical trials and delays in regulatory review; delay or inability to obtain regulatory approval of VectivBio’s product candidate and successful compliance with FDA and other governmental regulations applicable to product approvals; risks inherent in developing drugs and conducting clinical trials; and the risks and uncertainties identified in the “Risk Factors” section of VectivBio’s registration statement on Form F-1 declared effective by the Securities and Exchange Commission on April 8, 2021 and its other subsequent filings with the Securities and Exchange Committee. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except to the extent required by law, VectivBio undertakes no obligation to update these statements to reflect events that occur or circumstances that exist after the date on which they were made.
Claudia D’Augusta VectivBio Chief Financial Officer [email protected]
Investors & Media: [email protected]