Alligator to maximise immuno-oncology innovation
With ongoing partnering discussion for the phase III trial with mitazalimab, Alligator Bioscience can put more focus on accelerating the development of ATOR-4066. To reach this goal, and push other pipeline projects further, the company now seeks to raise approximately SEK 150.9 million in a rights issue.
When it comes to cancer immunotherapy development, Alligator Bioscience is leveraging its expertise in the CD40 protein – a molecular target that plays a major role in immune response regulation.
Through this expertise, the Swedish biotech has been making headways with the clinical development of CD40 agonist mitazalimab. At the beginning of the year, Alligator posted positive topline data in a phase II trial with mitazalimab in first-line pancreatic cancer patients. When combined with chemotherapy (mFOLFIRINOX), the CD40 agonist leads to improved clinical outcomes for these patients. Read the full story here.
Maximising value through the Neo-X-Prime platform
The positive phase II data generated with mitazalimab in pancreatic cancer 9 months earlier than initially anticipated, has demonstrated that the changes made in Alligator’s operations and strategy a few years ago are paying off and that Alligator has a truly differentiated platform able to generate safe and efficacious therapies where other players have failed.
In a recent BioStock interview, Alligator’s CEO Søren Bregenholt had this to say about the company’s priorities throughout 2024:
»We remain completely focused on our dual goals of maximising our chances of developing innovative immuno-oncology therapies while ensuring the best returns for our stakeholders.«
One of Alligator’s other projects, ATOR-4066 (“4066”), stems from the knowledge gathered developing mitazalimab. Through this knowledge, Alligator has developed the proprietary immunotherapy technology platform Neo-X-Prime with the aim of generating bispecific antibodies targeting CD40 alongside antigens expressed in a highly specific manner by the tumour. This allows for the activation of the CD40 only at the heart of the tumour, which is expected to translate to best-in-class efficacy, safety and tolerability.
And that is what 4066 has been shown to do in a preclinical setting. So, while the company scouts for potential partners to carry out a phase III trial with mitazalimab in pancreatic cancer, Alligator can put its efforts in bringing 4066 to the clinic and generating strong clinical data.
Raising capital for project advancements
Given the extent of Alligator’s development, which also includes ATOR-1017 (“1017”), and ALG-APV.527 (“527”), two compounds that target the 4-1BB molecule – read more here – the company is raising capital to push forward with its goal to develop best-in-class tumor-directed antibody drugs for hard-to-treat cancers.
For this purpose, Alligator has decided to carry out a rights issue of approximately SEK 150.9 million. If the interest in participating is high, the company may resolve on an over-allotment issue of a maximum of approximately SEK 100 million.
The company has received subscription undertakings from a number of its largest existing shareholders, including Koncentra Holding (part of Allegro Investment Fund) and Roxette Photo. Several members of the company’s Board of Directors and management, including the company’s chairman of Anders Ekblom and CEO Søren Bregenholt, have also committed to subscribe to the issue. The total pledged undertakings amount to approximately SEK 59.8 million, corresponding to about 40 per cent of the issue, highlighting their strong belief in the long-term potential of the company.
To secure the company’s liquidity needs until the completion of the rights issue, Alligator has entered into a bridge loan agreement for a total consideration of approximately SEK 58.8 million with Koncentra and Roxette Photo.
The offering in summary
| Terms | Existing shareholders will receive three unit rights for each existing share. 14 unit rights entitle the holder to subscribe for one unit. Each unit consists of one ordinary share and one series TO 9 warrant. | |
| Subscription period | March 21 – April 5, 2024 | |
| Subscription price | SEK 1.07 per unit | |
| Issue volume | 150.9 MSEK + proceeds from warrants | |
| Dilution | Excluding over-allotment, the dilution will be 17.6 per cent upon full subscription in the rights issue. There will be a further dilution of 15.0 per cent if the TO 9 series warrants are fully exercised. | |
Information and subscription
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Subscription at Avanza |
IMPORTANT INFORMATION
This material constitutes an introduction to the rights issue of units in Alligator (the ”Rights Issue”) and should be regarded as marketing material. The material is not and shall not be considered to constitute a prospectus in accordance with applicable laws and regulations. Invitation to shareholders and the public to subscribe for units in the Rights Issue takes place only through the prospectus that has been approved and registered by the Swedish Financial Supervisory Authority (the ”Prospectus”), and which has been published on www.alligatorbioscience.se/en/investors/preferential-rights-issue-q1-2024/. The Swedish Financial Supervisory Authority’s approval of the Prospectus shall not be construed as an approval of the new shares or warrants. In order for an investor to fully understand the potential risks and benefits associated with the decision to participate in the Rights Issue, any investment decision should only be made based on the information in the Prospectus. Investors are advised to read the full Prospectus.
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