Home News Rights issue takes Expres2ion breast cancer vaccine to phase I

Rights issue takes Expres2ion breast cancer vaccine to phase I

Expres2ion to raise SEK 60 million

Rights issue takes Expres2ion breast cancer vaccine to phase I

14 June, 2024

Having validated its vaccine platform in Covid-19, Expres2ion Biotech now turns to the treatment of breast cancer. A SEK 60 million rights issue of units will fund a phase I study with the breast cancer vaccine candidate ES2B-C001, building on promising preclinical results. The capital raise will also support the cytomegalovirus vaccine discovery project in the Evaxion collaboration, and other working capital including in the grant sponsored research and development.

Many stakeholders turned their attention to ExpreS2ion Biotech and their ExpreS2 platform during the Covid-19 pandemic. As part of the licensing collaboration with Danish Bavarian Nordic, the company developed the ABNCoV2 vaccine candidate, joining the ongoing global battle against the SARS-CoV2. Last summer, clinical results were announced, and they were surpassing expectations, providing a clear clinical proof of concept and phase III validation of the platform. Times, however, had changed and Bavarian Nordic deemed the commercial potential of ABNCoV2 limited.

With a final SEK 20 million milestone payment for the ABNCoV2 project, focus for ExpreS2ion has shifted to the next project in the pipeline: ES2B-C001. The candidate is developed for the treatment of breast cancer, stimulating the immune system to produce polyclonal antibodies against the HER2 protein that causes the disease.

Looking to enhance the current treatment landscape

Accounting for 20 – 30 per cent of all breast cancer cases, ExpreS2ion is heading toward a substantial market when targeting the HER2 positive subsegment. The market for HER 2 positive breast cancer treatments is estimated at above USD 10 billion yearly. The treatment landscape is currently dominated by monoclonal antibodies (mAbs) like Roche’s Herceptin and Perjeta.

Unfortunately, the use of mAbs often come at a great expense, both in terms of cost and severe side effects. In addition to being expensive, the treatments also need to be administered repeatedly via intravenous infusion, putting extra strain on both the patient and the healthcare system. On top of that, most patients develop resistance within the first year, rendering the treatment ineffective.

Promising preclinical data package

ExpreS2ion aims to solve the segments medical challenge with ES2B-C001. The candidate has been shown to inhibit tumour growth in several pre-clinical studies. Perhaps most notably, the inhibiting effect was shown in Herceptin resistant tumour cells, enabling the use of the cancer vaccine in the fragile mAbs resistant patient group.

After completing the preclinical GLP safety studies, ExpreS2ion is currently working towards clinical phase I studies with the candidate, with GMP manufacturing at the top of the agenda.

Exploring various viruses in collaboration with academia

Apart from breast cancer, ExpreS2ion is also exploring the potential in malaria, influenza and the nipah virus, in collaboration with various academic institutions. Examining the malaria endeavor, Oxford University is developing four different vaccine candidates that are based on the ExpreS2 platform, with two candidates currently being investigated in a phase II trial.

– Our partners at University of Oxford build their main malaria vaccine research on the already documented clinical evidence that our ExpreS2-made antigen has shown the highest level of antibody generation in humans vaccinated against malaria to-date, ExpreS2ion CEO Bent U. Frandsen told BioStock in an interview.

CMV-collaboration with Evaxion Biotech

At the end of 2022, ExpreS2ion took yet another step to utilize the full potential of the vaccine platform, with the collaboration with Danish colleague Evaxion Biotech to develop a range of new drug candidates targeting the cytomegalovirus (CMV). Being part of the herpesvirus family, the virus is widespread, with half of the US population being infected by the age of 40. Most people show no symptoms, but for individuals with weakened immune systems having had organ transplants, or certain groups of newborns, the symptoms can be quite severe.

Combining ExpreS2 with Evaxion’s AI-powered drug discovery platform, the goal is to develop a lead candidate before the end of 2025. Research and IP costs are split evenly between the companies during this stage and ExpreS2ion will then have the first right to licence.

To enter phase I with capital raise

With phase I preparations for ES2B-C001 at the top on the agenda, the company is currently looking to raise initially SEK 60 million in a rights issue of units. Approximately half of the issue is covered by subscription- and guarantee commitments. The majority of the capital, or 65 per cent, is intended for the phase I study, and approximately 10 per cent is earmarked for the CMV project.

Apart from new shares, the issued units include two series of warrants TO 10 and TO 11. The TO 10 warrants can potentially provide the company with an additional SEK 6,6 – 90 million this November, while the TO 11 warrants is intended to raise SEK 6,6 – 105 million at the end of September 2025.

The offering in brief

Terms Existing shareholders has received seven unit rights for each existing share. Six unit rights entitle to the subscription of one unit. Each unit consists of one share, one warrant of series TO 10 and one warrant of series TO 11.
Subscription period 12 june – 27 june 2024
Subscription price SEK 1.00 per unit, corresponding to SEK 1.00 per share.The subscription price in the series TO 10 warrants will amount to 70 per cent of the volume weighted average price of the company’s shares during 1 – 14 November 2024, but not less than the quota value of the shares and not more than SEK 1.5 per share. The subscription price in the series TO 11 warrants will amount to 70 per cent of the volume weighted average price of the company´s shares during 1 – 12 September 2025, but not less than the quota value of the shares and not more than SEK 1.75 per share.
Issue volume SEK 60 million in the unit issue. SEK 6,6 – 90 million in TO 10 and SEK 6,6 – 105 million in TO 11.
Pre money valuation SEK 111 million

More information and signup

To the offer at AvanzaTo the offer at Nordnet


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This material has been created for marketing purposes and is not and should not be considered a prospectus under applicable laws and regulations. The complete terms and conditions for the rights issue and more information about the company have been presented in an prospectus published on the above-mentioned company’s website.

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