NFL Biosciences: IPO on Euronext Growth Paris
NFL Biosciences has launched its IPO on Euronext Growth Paris, the multilateral trading market dedicated to growth SMEs. On this occasion, the biopharmaceutical company intends to raise between 4.47 and 6.05 million euros through the issue of 1,315,032 new shares, i.e. 5.26 million euros at the median price of the offering of securities.
In the event of strong demand, the company could raise up to 8 million euros, in the event of the exercise of the two extensions (extension clause and over-allotment option, only by issuing new shares) and setting the price. at the top of the range.
The operation was the subject of subscription commitments for a total amount of 2.46 million euros, representing 46.84% of the offer, including 525,000 euros from the directors, and commitments of guarantee for 2.07 million euros (or 39.35% of the offer).
Individuals can subscribe as part of an open price offer (OPO) representing at least 10% of the securities offered. The A1 order fraction (from 1 to 250 requested shares) will be served in priority over A2 order fractions (more than 250 requested shares), in the event that all subscription orders cannot be fully satisfied.
The funds raised will be mainly allocated to carrying out the phase II / III clinical study of its drug candidate NFL-101 to help with smoking cessation.
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Prix de l’action NFL Biosciences (ALNFL, FR0014003XT0)
NFL Biosciences shares (denominated: ALNFL) are offered as part of the initial public offering at a unit price of between 3.40 euros and 4.60 euros, i.e. more or less 15% of the median price of the offer ( 4 euros).
If the operation is successful, the market capitalization of the company would reach 20.9 million euros in the middle of the range and 26 million euros maximum, in the event of the full exercise of the two extensions and the setting of the price at the upper limit of the indicative range, ie 4.60 euros.
NFL Biosciences (Montpellier), a biotech company specializing in the treatment of dependencies and addictions
Based in Castelnau-Le-Lez, near Montpellier, NFL Biosciences is a biopharmaceutical company that develops drug candidates for the treatment of dependencies and addictions based on plant proteins.
For the time being positioned in the smoking cessation market, NFL Biosciences plans to quickly initiate its preclinical developments (initial, on animals) to help with cannabis withdrawal and the treatment of alcohol dependence.
In France alone, there are (source: French Observatory of Drugs and Drug Addiction, 2019):
- 5 million daily alcohol consumers
- 13 million daily smokers (and 15 million including occasional smokers in the year)
- 1.5 million regular smokers of recreational cannabis, including 900,000 daily (for a total of 5 million users in the year).
NFL-101, drug candidate for the treatment of tobacco addiction, and potential blockbuster
For now, its product pipeline is focused on a single drug candidate in clinical development, called NFL-101, composed of natural proteins extracted from tobacco leaves, and free of nicotine, intended for the treatment of cigarette addiction.
Protected until 2031 to 2041 by the filing of two patent families, NFL-101 was the subject of preclinical studies and a phase I clinical study which confirmed the safety of the product and demonstrated its biological activity. (action on the immune system). The product is derived from an allergenic extract of tobacco leaves developed by the Institut Pasteur, marketed until 2004 by Stallergènes (a laboratory specializing in the treatment of allergies, from which NFL acquired manufacturing know-how) in order to desensitize factory workers, who developed skin allergies on contact with tobacco leaves.
This allergen was simultaneously administered to 10,000 smokers, as a smoking cessation aid by a doctor in the south of France. The retrospective analysis of their abstinence carried out made it possible, out of 290 respondents, to demonstrate an efficacy at 12 months of 44%, much higher than the treatments currently available on the market.
780 million smokers say they want to quit smoking, according to the WHO. According to the company, stopping clean, without medication or psychological help, has a limited success rate of 3% to 5% at 12 months. Smokers would be nine times more likely to be abstinent within a year if they were able to quit completely within the first week after attempting.
The smoking cessation market, with a size of nearly 4.5 billion dollars per year, is currently mainly addressed by nicotine substitutes and Pfizer’s Champix (80% sold in the United States), with continuous abstinence success at 6 months, which peaks at 16% and 22% respectively.
Management sees in NFL-101, the only product on the market under development of botanical origin, a potential blockbuster of $ 1.8 billion in annual sales worldwide.
If the development is completed, it is expected to be put on the market from 2026 in Western countries and from 2025 in India via an agreement with a local partner.
Upcoming drug candidates for cannabis addiction and reducing alcohol consumption
In order to diversify its product pipeline, NFL plans to launch preclinical development programs for its next two drug candidates from the fourth quarter of 2021:
- NFL-201: for weaning from cannabis dependence, from a mixed cannabis / tobacco extract without nicotine, THC or CBD;
- NFL-301: for the reduction of alcohol consumption, from a plant extract obtained from traditional Chinese medicine.
Their entry into clinical development in humans is expected in the second half of 2023 and 2024, respectively, for marketing from 2027.
Use of fundraising by NFL Biosciences
The net proceeds of the capital increase are intended to be primarily devoted to the clinical development of NFL-101, i.e. for the completion of the offer at 100% (without extension) corresponding to 4.76 million euros:
- the phase II / III study in Australia and France
- production of clinical batches (100,000 doses)
- the NFL-101 + nicotine replacement patch study in the United States
NFL Biosciences IPO: terms, ISIN code, schedule
Terms of the NFL Biosciences IPO
- Listing market: Euronext Growth Paris
- Mnemonic code of the action: ALNFL
- Code ISIN : FR0014003XT0
- Introductory price: 3.40 to 4.60 euros (median price: 4 euros)
- Nature of the transaction: capital increase only
- Number of shares offered: 1,315,032 new shares to be issued (1,739,128 maximum)
- Eligibility of securities: PEA, SME PEA, ordinary securities account (CTO)
Dates of the IPO
The indicative timetable for the operation, indicated in the press release, is as follows.
- June 16, 2021: opening of the subscription period
- June 29, 2021: closing of the open price offer (OPO)
- June 30, 2021: announcement of the result of the offer, first listing
- July 2, 2021: settlement-delivery of securities
- July 5, 2021: start of trading of shares on Euronext Growth Paris