- Recruitment for NEW-HOPE, a phase II clinical study in treating hypertension, faster than projected
- Target patient profile in QUID HF, a phase IIa clinical study in treating heart failure, widened
- Quantum Genomics to announce three-year strategic plan on 19 April 2018
Quantum Genomics (Euronext Growth—FR0011648971—ALQGC), a biopharmaceutical company specialized in the development of a new class of drugs acting directly on the brain to treat hypertension and heart failure, announced today the implementation of an equity line financing facility, capped at €24 million1 over a three-year period, structured and backed by Kepler Cheuvreux. This financing allows Quantum Genomics to secure its development plan over the long term and increase its operational flexibility, in order to consolidate its position as an active innovator on a market that has seen a wave of new activity over the last months.
Financing plan offering long-term security for greater flexibility
Pursuant to the terms of the agreement, Kepler Cheuvreux pledged to subscribe up to €24 million of shares over the next 36 months. This equity financing plan will begin with a €6 million tranche starting 5 March 2018, provided that contractual conditions are fulfilled. Quantum Genomics retains the option to suspend or terminate this agreement at any time and thus controls the flow of financing from Kepler Cheuvreux. Shares will be offered at a value determined by weighting average market volume with volumes over the two market days preceding each issue and applying a discount of up to 7.5%. The discount allows Kepler Cheuvreux, which does not seek to remain a shareholder in Quantum Genomics, to act as a financial intermediary and guarantee subscription for shares under a firm agreement.
To illustrate, assuming use of the initial tranche of the equity line already authorized at the 8 June 2017 general assembly of €6 million with an issue of 2,197,000 shares at €2.73 each2, a shareholder owning 1.00% of Quantum Genomics capital prior to the transaction would see a reduction in his or her shares to 0.83% stake after this financing3.
Lionel Ségard, Chairman and CEO of Quantum Genomics, explains:
“This initial €6 million tranche grants us flexibility to maximize the positive and unexpectedly news of rapid recruitment in our NEW-HOPE hypertension trial in the US. In the longer term, if the transaction is approved at the General Meeting, it will secure our financing until the end of December 2020 and will boost our ability to execute in a market where interest is growing in cardiovascular treatments. It is a key advantage that lets us consolidate and even intensify our clinical trial programs to quickly develop and provide patients with a new class of medicines for treating targeted hypertension and heart failure. We will, moreover, be announcing our three-year strategic plan on April 19.”
The number of shares issued under this agreement and included in negotiations will be the subject of a Euronext notice and an announcement on the Quantum Genomics website. Their share issue does not entail the publication of a prospectus requiring AMF approval.
Two clinical trials under way to develop a major innovation
This financing operation comes at a time when Quantum Genomics is conducting two clinical trials to hone its class of cardiovascular medicines:
- NEW-HOPE—Phase II trial for treatment of hypertension
This study targets patients with high blood pressure, who are overweight or obese, half of which come from ethnic minorities in America (African-American, Hispanics, Asians). These groups are specifically susceptible to complicated or even resistant hypertension. The study is recruiting 250 patients in 25 hospitals in the United States. Patient recruitment is progressing very rapidly and is exceeding initial projections.
- QUID HF—Phase IIa trial for treatment of heart failure
This pilot trial, which follows up on promising preclinical data that indicated significantly improved heart function in rats that have had myocardial infarctions, aims to evaluate the safety of drug candidate QGC101 and study the markers of its efficacy for treating heart failure in humans. The trial is being conducted in eight European countries and was the subject of an amendment at the start of the year that widened the target patient profile to simplify and accelerate recruitment.
Quantum Genomics is actively developing its innovative approach while focusing on the treatment of hypertension and heart failure, two promising therapeutic fields whose needs have yet to be sufficiently addressed. Accordingly, the company will be announcing its strategic plan for the next three years on 19 April.
The calendar of events for the next three months is as follows:
- 8 March 2018 : F2IC Individual Shareholders Meeting (Bordeaux)
- 12–14 March 2018 : BIO-Europe conference in Amsterdam
- 29 March 2018 : Publication of results for financial year 2017
- 18–19 April 2018 : SmallCap Event (Paris)
- 19 April 2018 : Announcement of three-year strategic plan
About Quantum Genomics
Quantum Genomics is a biopharmaceutical company that specialises in the development of a new class of cardiovascular medications based on brain aminopeptidase A inhibition (BAPAI). Quantum Genomics is the only company in the world exploring this innovative approach that directly targets the brain. The company relies on its 20-plus years of basic and clinical research at some of the largest French laboratories (The French National Institute of Health and Medical Research (INSERM), the French National Centre for Scientific Research (CNRS), the Collège de France, and Paris-Descartes University). The goal of Quantum Genomics is to develop innovative treatments for complicated, or even resistant, cases of arterial hypertension (around 30% of patients have poor control of their condition or receive ineffective treatment) and for congestive heart failure (one in two patients diagnosed with congestive heart failure dies within five years).
Based in Paris and New York, the company is listed on the Euronext Growth exchange in Paris (FR0011648971 - ALQGC) and trades on the OTCQX market in the United States (symbol: QNNTF). Click here for more information about Quantum Genomics. Follow us on Twitter and LinkedIn.
|Lionel Ségard |
Chairman and CEO
+33 (0)1 85 34 77 70
|Marc Karako |
CFO - Investor Relations
+33 (0)1 85 34 77 70 - email@example.com
|Francis Temman |
Media Relations and Scientific Communications
+33 (0)6 50 92 21 56 - firstname.lastname@example.org
|Nathalie Boumendil |
+33 (0)6 85 82 41 95 - email@example.com
|Edison Advisors (U.S.)|
|Tirth Patel |
+1 (646) 653-7035 - firstname.lastname@example.org
1- Launched in accordance with the eighth resolution of the 8 June 2017 shareholders' general meeting, the operation will commence with an initial tranche of €6 million. The decision to continue or abandon it thereafter will be taken at the company's next general meeting.
2- By way of example.
3- Based on the capital of Quantum Genomics on 5 March 2018, totalling 10,989,392 shares.