Today, on the 2nd of June 2020, the subscription period for Initiator Pharma A/S ("Initiator Pharma" or "the Company") rights issue of units begins. The subscription period runs until the 16th of June 2020. A fully subscribed issue of units and utilized warrants issued in this rights issue will provide Initiator Pharma with a total of approximately MSEK 17.4 (before issue costs amounting to MSEK 1.2 incl. guarantee compensation), of which approximately MSEK 6.96 represents the initial part of the issue and approximately MSEK 10.44 represents the warrants of series TO 2. Prior to the rights issue, Initiator Pharma has received subscription commitments and agreements regarding guarantee of in total approximately MSEK 6.96, corresponding to 100 percent of the initial part of the initial issue volume. Memorandum, teaser, and subscription forms are available through the websites of Initiator Pharma (www.initiatorpharma.com) and Sedermera Fondkommission (www.sedermera.se) Sedermera Fondkommission is the financial adviser in the rights issue.
Background and motive
The capitalization is executed in order to finance the development of the Company's drug candidate IP2018 through a Phase IIa clinical study to generate Proof-of-Concept. In preclinical studies, Initiator Pharma has shown that IP2018 has effects on both depression and erectile function, which is a clear differentiation from existing antidepressant drugs on the market at present. Together with the drug candidate IPED2015, a first-class compound for the treatment of erectile dysfunction, which recently received positive phase II results, IP2018 complements the Company's research portfolio. Obtaining Proof-of-Concept will place IP2018 as a new type of treatment for the large number of patients who, due to serious side effects, do not want to use existing marketed drugs. Positive results will also facilitate attractive agreements with major pharmaceutical companies active in the field of depression. In addition to costs related to the clinical work with IP2018, the issue proceeds from the capitalization will also finance costs for IPED2015 as well as costs related to examination of further indications. The costs for IPED2015 will be business development related.
The rights issue in short
Terms and conditions for warrants of series TO 2 in short
There is a possibility to listen to the Company’s presentation and hear more about the future plans and the offer. This will take place through a webcast in collaboration with Biostock in accordance with the below details:
IP2018 is a monoamine reuptake inhibitor that inhibits the synaptic reuptake of serotonin, norepinephrine and dopamine. IP2018 preferably inhibits serotonin followed by reuptake of dopamine, while it has significantly less effect on norepinephrine reuptake. IP2018 has an antidepressant effect in animal models of depression and effect on erectile function. In addition, there is a robust preclinical data package, a phase I study, and a positive emission tomography (PET) study in patients showing binding to serotonin reuptake and dopamine reuptake transporters.
IPED2015 is a small molecule that in vitro inhibits the dopamine transporters (DAT), the noradrenaline transporter (NAT), and the sodium-dependent serotonin transporters (SERT). IPED2015 binds in vivo preferentially to DAT. IPED2015 is a potent inhibitor of DAT and has been found to increase dopamine in the synapses and to induce an erection in male rats. Besides, IPED2015 has been found to act through a peripheral pathway in erectile tissue, where increases in dopamine concentrations lead to the relaxation of erectile smooth muscle.
Sedermera Fondkommission is the financial adviser in connection with Initiator Pharma’s rights issue.
For further information regarding the rights issue, please contact:
Phone: +46 40 - 615 14 10
For further information about Initiator Pharma, please contact:
Claus Elsborg Olesen, CEO
Telephone number: +45 6126 0035
About Initiator Pharma
Initiator Pharma is a biotechnology company based in Aarhus, Denmark. The company"s main asset, IPED2015, is a candidate drug intended for patients with erectile dysfunction. The treatment is expected to improve the quality of life for a growing number of patients who are not responding to or cannot be treated with existing drugs on the market. Read more on www.initiatorpharma.com.
About erectile dysfunction
ED is a sexual dysfunction characterised by the inability to achieve or maintain an erection during sexual intercourse. More than 150 million men around the world suffer from ED; a number that is expected to increase to more than 320 million by 2025 due to an ageing population and an increased incidence of lifestyle illnesses such as diabetes. ED entails an impaired quality of life in patients due to various psychosocial factors, such as low self-esteem, depression, sadness, anger, frustration, anxiety and relationship problems (1, 2, 3).