MedinCell Successfully Renegotiates the Drawdown Conditions of the Last Tranche of the EIB Loan and Secures an Additional €5m of Non-Dilutive Funding

  • Immediate availability of the last €5 million tranche of the €20 million European Investment Bank (EIB) total loan
  • Strengthened financial visibility, beyond 2021 in most scenarios

MONTPELLIER, France--()--Regulatory News:

MedinCell (Paris:MEDCL):

The renegotiation of EIB loan conditions complements other measures taken to enhance our financial visibility in the context of the Covid-19 crisis,” explains Jaime Arango, Chief Financial Officer of MedinCell. “Taking into account the €5 million immediately available and the PEG (Prêt Garanti par l’Etat / State Guaranteed loan) of €10.9 million, as well as the liquidity detailed at the time of the publication of our consolidated results a few days ago, we have more than €30 million of available financial resources. This amount can be put into perspective with the cash burn linked to the activity which amounted to €12.5 million during the last financial year ending March 31, 2020, in line with our forecasts. Anticipating an evolution of 10 to 15% of our expenses for the current financial year, not counting our Covid-19 project, our financial visibility remains comfortable and allows us to project beyond 2021.”

As a remember, the EIB provided support of €20 million to MedinCell, to be received in three instalments in March 2018. The first two were paid in June 2018 and July 2019. This loan is repayable beyond 1 June 2023. At that time MedinCell should already be receiving royalty revenues from the sale of the first products based on its proprietary technology.

Potential upcoming events related to MedinCell's portfolio of products based on BEPO® technology

  • Recruitment completed for the mdc-IRM Phase 3 clinical study, interim analysis expected before the end of 2020
  • mdc-CWM Phase 2 clinical study completed, Phase 3 launch planned by the end of 2020
  • Advancing a research program for Covid-19 prevention (prophylaxis)
  • Formulation selection paving the way for preclinical development for 3 programs by the end of 2020

About MedinCell

MedinCell is a clinical stage pharmaceutical company that develops a portfolio of long-acting injectable products in various therapeutic areas by combining its proprietary BEPO® technology with active ingredients already known and marketed. Through the controlled and extended release of the active pharmaceutical ingredient, MedinCell makes medical treatments more efficient, particularly thanks to improved compliance, i.e. compliance with medical prescriptions, and to a significant reduction in the quantity of medication required as part of a one-off or chronic treatment. The BEPO® technology makes it possible to control and guarantee the regular delivery of a drug at the optimal therapeutic dose for several days, weeks or months starting from the subcutaneous or local injection of a simple deposit of a few millimeters, fully bioresorbable. Based in Montpellier, MedinCell currently employs more than 130 people representing over 25 different nationalities.

This press release may contain forward-looking statements, especially on the Company’s progress of its clinical trials. Although the Company believes that its expectations are based on reasonable assumptions, any statements other than statements of historical facts that may be contained in this press release relating to future events are subject to change without notice, factors beyond the Company's control and the Company's financial capabilities.

These statements may include, but are not limited to, any statement beginning with, followed by or including words or phrases such as "objective", "believe", "anticipate", "foresee", "aim", "intend", "may", "anticipate", "estimate", "plan", "project", "will", "may", "probably", "should", "could" and other words and phrases of the same meaning or used in negative form. Forward-looking statements are subject to inherent risks and uncertainties beyond the Company's control that may, if any, cause actual results, performance or achievements to differ materially from those anticipated or expressed explicitly or implicitly by such forward-looking statements. A list and description of these risks, contingencies and uncertainties can be found in the documents filed by the Company with the Autorité des Marchés Financiers (AMF) pursuant to its regulatory obligations, including the Company's registration document, registered with the AMF on September 4, 2018 under number I. 18-062, as well as in the documents and reports to be published subsequently by the Company. In addition, these forward-looking statements speak only as of the date of this press release. Readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, the Company does not undertake any obligation to publicly update these forward-looking statements or to update the reasons why actual results could differ materially from those anticipated by the forward-looking statements, including in the event that new information becomes available. The Company's update of one or more forward-looking statements does not imply that the Company will make any further updates to such forward-looking statements or other forward-looking statements.

This press release is for information purposes only. The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy or subscribe for the Company's shares in any jurisdiction, in particular in France. Similarly, this press release does not constitute investment advice and should not be treated as such. It is not related to the investment objectives, financial situation or specific needs of any recipient. It should not deprive the recipients of the opportunity to exercise their own judgment. All opinions expressed in this document are subject to change without notice. The distribution of this press release may be subject to legal restrictions in certain jurisdictions. Persons who come to know about this press release are required to inquire about and comply with these restrictions.

Contacts

MedinCell
David Heuzé
Communication leader
david.heuze@medincell.com
+33 (0)6 83 25 21 86

NewCap
Louis-Victor Delouvrier
Relations investisseurs
medincell@newcap.eu
+33 (0)1 44 71 98 53

NewCap
Nicolas Merigeau
Relations médias
medincell@newcap.eu
+33 (0)1 44 71 94 98

Contacts

MedinCell
David Heuzé
Communication leader
david.heuze@medincell.com
+33 (0)6 83 25 21 86

NewCap
Louis-Victor Delouvrier
Relations investisseurs
medincell@newcap.eu
+33 (0)1 44 71 98 53

NewCap
Nicolas Merigeau
Relations médias
medincell@newcap.eu
+33 (0)1 44 71 94 98