# N4 Pharma acquires of a controlling interest in Nanogenics

- Link: https://www.directorstalkinterviews.com/n4-pharma-acquires-of-a-controlling-interest-in-nanogenics/4121128438
- Published: 2023-09-28T07:19:02+01:00
- Author: Amilia Stone

**N4 Pharma Plc** (LON:N4P), the specialist pharmaceutical company developing Nuvec
®, a novel delivery system for oncology, gene therapy and vaccines, has announced
the acquisition of a controlling interest, through a subscription for new ordinary
shares, in Nanogenics Limited, a company with a complementary lipid and peptide-
based delivery system called Liptide®, which it is using to develop a novel siRNA
product targeting an unmet clinical need in the ophthalmology market.

The acquisition has been funded by a placing of 35,000,000 new ordinary shares of
0.4p each in the Company at an issue price of 1p per Placing Share raising £350,000(
before expenses).

**Highlights**

·     Subscription for new shares in Nanogenics to acquire a 71.25% interest for
£250,000, reducing to a 63.75% interest as management hit strategic milestones

·     Nanogenic’s lead product candidate, ECP105 uses the Liptide® platform to deliver
a proprietary siRNA sequence to silence a fibrotic gene thereby enhancing the recovery
of patients in post-glaucoma surgery

·     In 2020, more than 75 million people worldwide were affected by glaucoma and
the total glaucoma treatment market size exceeded $5.5 billion in 2021 and is expected
to have over 3.2% CAGR from 2022 to 2028^(1)

·     Investment in an early-stage siRNA product at an attractive valuation which
meets an unmet clinical need with the opportunity to target other anti-fibrotic 
markets (liver and lung)

·     Expected technical synergies from developing Liptide® alongside Nuvec®

**Use of Proceeds**

£250,000 of the funds raised will be used to subscribe for an initial economic interest
of 71.25% in Nanogenics, reducing to 63.75% upon future shares vesting to Nanogenics’
management for meeting key strategic milestones. In addition, the Company is providing
a loan facility of £50,000 to Nanogenics (the loan being a 2-year discretionary 
loan at base rate repayable before any dividends are paid out by Nanogenics). The
remainder of the funds raised will be used to cover transaction costs.

**Information on Nanogenics**

Nanogenics (www.nanogenics.co.uk) has developed a proprietary siRNA sequence to 
silence the fibrotic gene Myocardin Related Transcription Factor B (“MRTF-B”). The
company is developing a product, named ECP105, for the recovery of post-surgical
treatment of glaucoma. In glaucoma treatment, surgery is used to lower intraocular
pressure for patients who have failed to respond to medication. The surgery creates
a reservoir (bleb) under the surface of the eye. The natural response of the body
is to try and ‘heal’ this drain causing fibrosis at the surgery site. This fibrosis
often leads to failure of the surgery and even with adjunctive anti-fibrotic therapy,
failure rates of surgery remain as high as 50% and patients are frequently required
to undergo further surgery. The current preventative measure for this fibrosis is
to use untargeted, cytotoxic anti-fibrotic drugs like Mitomycin C (a chemotherapy
drug) which have a poor safety profile and are used off-label in the US market.

Nanogenics has already undertaken an initial proof of concept _in-vivo_ study which
has demonstrated that a single dose of ECP105 can match the anti-fibrotic effect
of Mitomycin C but does not have the cytotoxic side effects, so unlike Mitomycin
C, it can be dosed repeatedly. Nanogenics will use the proceeds received as part
of the investment by the Company to repeat this study using a novel formulation 
containing its proprietary siRNA sequence as preparation for discussions with the
FDA and MHRA to approve a GLP toxicity regulatory study and first in human clinical
trials.

> **Nigel Theobald, Chief Executive Officer of N4 Pharma Plc, commented:**
> _“We have been investigating potential assets to add to the Company for some time.
> The RNA sector is an exciting one with a lot of investor and commercial interest.
> The addition of the Liptide® delivery system and siRNA sequence adds significant
> potential value to our business. As well as glaucoma, the MRTF-B gene is also 
> responsible for fibrosis of the liver and lung, two large areas into which Nanogenics
> could develop its portfolio._
> _“Non-viral, non-lipid delivery systems are high in demand in the gene therapy
> space and we now have two such delivery systems and expect considerable technical
> synergies in developing programmes using both Nuvec® and Liptide®. We are very
> excited about securing this material interest in Nanogenics on, what we consider
> to be, very favourable commercial terms and we look forward to seeing Liptide®
> develop in parallel to Nuvec® and the resulting increase in newsflow having two
> assets under development will bring.”_

**Application for Admission**

The Placing has been conducted utilising the Company’s existing share authorities.
Application has been made for the Placing Shares to be admitted to trading on AIM
and it is expected that Admission will take place and that trading will commence
on AIM at 8.00 a.m. on or around 3 October 2023. Once issued, the Placing Shares
will rank _pari passu_ with the Company’s existing ordinary shares. 

**Total Voting Rights**

Following Admission, the enlarged issued share capital of N4 Pharma will comprise
268,780,349 ordinary shares of 0.4 pence each. The Company does not hold any Ordinary
Shares in treasury. Consequently, 268,780,349 is the figure which may be used by
shareholders as the denominator for the calculation by which they will determine
if they are required to notify their interest in, or a change to their interest 
in, the Company under the FCA’s Disclosure and Transparency Rules.

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