Milestones in sight for Xintela, which is currently in issue

This material has been prepared for marketing purposes and is not and shall not be considered to constitute a prospectus under applicable laws and regulations. The full terms and conditions of the rights issue and further information about the company have been set out in the EU Growth Prospectus which was published and published on xintela.se on May 31, 2023.

The stem cell company Xintela has two ongoing clinical studies with its stem cell product XSTEM for the treatment of knee osteoarthritis and difficult-to-heal leg ulcers. Data reading is expected in both studies in the near future. In addition, the preclinical development of the drug candidates TARG9 and TARG10 for the treatment of aggressive cancer continues in the subsidiary Targinta. To keep up with the pace of development work, Xintela is now conducting a rights issue where the company aims to raise SEK 123 million. The subscription period started on June 5 and runs until June 19, 2023.

is a biopharmaceutical company that develops stem cell-based treatments with a focus on osteoarthritis and difficult-to-heal leg ulcers. The company also develops targeted antibody-based treatments for aggressive cancers such as triple-negative breast cancer and the brain tumor glioblastoma.

Patented marker technology and product

Xintela's patented stem cell product XSTEM consists of allogeneic (donated) mesenchymal stem cells (MSC), a type of multipotent cell that has the ability to transform into different cell types, e.g. cartilage cells. In addition, the stem cells can affect the immune system by secreting immunomodulatory substances and also have an anti-inflammatory effect. The stem cells can regenerate damaged tissues and organs, and stimulate cells in a damaged tissue to repair the damage.

Xintela produces its stem cells in its own GMP-approved production facility. In the production process, Xintela uses the cell surface marker integrin α10β1 to select the stem cells, resulting in homogeneous, high-quality stem cell products that are equivalent between different donors. Read more.

Clinical studies are ongoing

Xintela is currently conducting two Phase I/IIa clinical trials with XSTEM. The first is ongoing in Australia in a total of 24 patients with knee osteoarthritis. The company has initiated dosing at the third and final dose level in the study and the treatment of 16 patients at the first and second dose levels has been assessed as safe at the one-month follow-up. Initial efficacy results from the lowest dose show that patients experience reduced pain and improved joint function in the knee six months after injection with XSTEM. In 2023, Xintela expects safety data from all doses, as well as 12-month efficacy readings from the lowest dose.

The second study is being conducted by the company in Linköping in patients with difficult-to-heal leg ulcers. Recruitment of a total of 12 patients is underway. Ten weeks after treatment, the company will read safety and efficacy data, and aims for early efficacy data in 2023.

Broad potential for the technology

Both osteoarthritis and non-healing wounds cause severe pain and reduced quality of life for the affected person. There is a great need for new treatments that can reverse the course of the disease, which is the goal of XSTEM. Previous preclinical results support that XSTEM is potentially a Disease Modifying Osteoarthritis Drug (DMOAD), i.e. a drug that can slow down cartilage breakdown and regenerate damaged articular cartilage in osteoarthritis and improve joint function. The company has also presented positive results from a preclinical wound model that suggest that XSTEM can improve wound healing in the treatment of non-healing wounds.

In addition to these indication areas, the company is continuously evaluating other possible indications for XSTEM. One of them is the pulmonary complication ARDS (Acute Respiratory Distress Syndrome). Results from the company's preclinical ARDS study in collaboration with Skåne University Hospital have recently been published in Respiratory ResearchIn parallel, preclinical development and preparations for a clinical study with the stem cell product continue. EQSTEM for the treatment of horses with joint disease.

The development of targeted cancer therapies, which is ongoing in the subsidiary Targinta, is also advancing. In this area, Xintela is conducting preclinical studies with drug candidates TARG9 which is an ADC (Antibody-Drug Conjugate) and TARG10 which is a function-blocking antibody. In addition, production of the antibodies and implementation of phase 0 clinical studies are planned. Read more.

Capital round with support from the company's largest owner

With results and other milestones in the near future, Xintela is now aiming to raise SEK 123 million in a unit issue, consisting of shares and warrants. Flerie Invest, which is Xintela's largest owner, intends to subscribe for SEK 50,1 million, partly through offsetting convertible loans. In order to complete the capital round at reasonable costs, Xintela has decided not to use any guarantors.

The subscription price in the issue is set at SEK 0,90 per unit, which corresponds to SEK 0,30 per share.

Warrants provide the opportunity

The offer includes free warrants with a term of two years. The holder of the warrants has the option to redeem these for new shares during four periods during the term. The last period occurs between May 26 and June 5, 2025.

Upon full exercise of all warrants, the company will receive an additional approximately SEK 82 million. The company's expectations are that the development projects during the term will show positive results from clinical studies and that commercial agreements have been entered into with partners in the pharmaceutical industry.

The offer in summary

Information and subscription

For more information about the rights issue, click here.