French biopharmaceutical company Genfit SAplans to sell its American depositary shares in an IPO and its ordinary shares in a concurrent private placement.
Each American depositary share will represent 1 ordinary share in the IPO and will be sold to investors in the U.S. The ordinary shares being offered in the private placement will be sold to investors in Europe and other countries outside the U.S.
Genfit plans to sell 5 million ordinary shares through the IPO and private placement. The company also plans to grant the underwriters an option to buy additional ADSs or ordinary shares in an amount up to 15% of the total number of ADSs and ordinary shares being sold in the offerings.
The company has applied to list the ADSs on the Nasdaq Global Market under the symbol GNFT. Genfit's ordinary shares are listed on the Euronext Paris under the symbol GNFT.
Genfit plans to use net proceeds of about €44.5 million to complete the ongoing phase 3 study of Genfit's medicine elafibranor for treating the liver disease known as nonalcoholic steatohepatitis, or NASH, and the launch of a phase 4 study as well as for regulatory approvals from the U.S. Food and Drug Administration and European Medicines Agency.
About €13.3 million of the net proceeds will be used to fund the potential commercialization of elafibranor for treating NASH.
In addition, €31.1 million of the proceeds will finance a phase 3 study of elafibranor to treat another liver disease, primary biliary cholangitis. Genfit also plans to use about €5.3 million of the proceeds to advance the commercial development of its in vitro diagnostic test to identify patients with NASH who may be appropriate candidates for drug therapy.
Another €5.3 million of the net proceeds will be used to further research the use of elafibranor as a potential backbone for combination therapies in order to launch two planned proof-of-concept studies. The remaining net proceeds will be used for working capital and for general corporate purposes.
Closings of the U.S. IPO and the European private placement will occur simultaneously.
SVB Leerink and Barclays are acting as joint global coordinators for both offerings and joint book runners for the U.S. IPO. Roth Capital Partners and H.C. Wainwright & Co. are acting as co-managers for the U.S. IPO. Bryan Garnier & Co. Ltd. and Natixis are acting as joint book runners with respect to the private placement.
Genfit develops therapeutic and diagnostic solutions primarily targeting liver diseases.