Preferential Rights Issue 2025

Background and Rationale
Alzinova is a Swedish biopharmaceutical company in clinical development phase specializing in the treatment of Alzheimer’s disease. The Company has conducted a Phase 1b clinical study in Alzheimer’s patients with the therapeutic vaccine ALZ-101, which is the Company’s oligomer-specific vaccine candidate. In parallel, Alzinova is also developing ALZ-201, an oligomer-specific monoclonal antibody that can be used as a stand-alone disease-modifying therapy or as a complement to ALZ-101 for the treatment of Alzheimer’s disease.

Alzinova has completed and communicated promising results from the Phase 1b study, which had safety and tolerability as its main objective. Immune response was secondary and cognitive effect and evaluation of biomarkers were exploratory objectives of the study. Data from the Phase 1b clinical trial show the following:

  • ALZ-101 demonstrates favorable results in terms of safety and tolerability in the 84-week study.
  • The immune response from vaccination is robust, long-lasting, and recurrent in more than 95 percent of patients (31 out of 32 patients generated the desired immune response)
  • Exploratory efficacy regarding impact on cognitive and functional parameters has been analyzed and shows a positive trend.

The results from the Phase 1b study provide a strong foundation for an upcoming Phase 2 study, which the Company is actively preparing for. In connection with an upcoming clinical phase 2 study, Alzinova is engaged in active partnership discussions with Big Pharma companies regarding a potential collaboration to finance future clinical studies.

The main purpose of the Rights Issue is to provide the Company with capital to complete the preparations for the vaccine candidate ALZ-101 for the upcoming clinical study while existing partner dialogues with Big Pharma companies are progressing.

Use of the proceeds

Upon full subscription in the Rights Issue, the Company will receive issue proceeds of approximately SEK 35.7 million, before issue costs. The issue costs are estimated to amount to approximately SEK 6 million, of which approximately SEK 2.9 million relates to compensation for underwriting commitments, provided that all underwriters choose cash compensation. Considering the significant progress made by the Company in connection with a successful Phase 1b study with the vaccine candidate ALZ-101, the Company intends to dispose of the net proceeds from the Rights Issue for the following purposes, in order of priority:

  • Upscaling of the manufacturing process for DS/DP (drug substance and drug product) prior to clinical trial (CMC), approximately 47 percent.
  • Working capital, approximately 44 percent.
  • Regulatory costs for FDA and EMA applications, approximately 9 percent.

The Rights Issue in summary

  • Subscription period: 17 April 2025 – 6 May 2025 (note that some nominees close subscription at an earlier date).
  • Trading in subscription rights: 17 April 2025 – 30 April 2025.
  • Subscription with preferential rights: For each existing share held on the record date 15 April 2025, one (1) subscription right will be received, five (5) subscription rights entitle to subscription of one (1) share.
  • Subscription price: The subscription price in the rights issue amounts to SEK 2.0 per share.
  • Proceeds: At full subscription in the Rights Issue, the company may receive a maximum of approximately SEK 35.7 million before issue costs.
    Subscription and guarantee commitments: The Rights Issue is covered to 85 percent by subscription commitments and guarantee commitments.

Links:

Press releases:

 

CEO Tord Labuda presented at Red Eyes Theme Event: Alzheimer’s and Parkinson’s

Carnegie Interview March 31