• Immediate availability of the last €5 million tranche of the €20 million European Investment Bank (EIB) total loan
• Strengthened financial visibility, beyond 2021 in most scenarios
“The renegotiation of EIB loan conditions complements other measures taken to enhance our financial visibility in the context of the Covid-19 crisis,” explains Jaime Arango, Chief Financial Officer of MedinCell.
“Taking into account the €5 million immediately available and the PEG (Prêt Garanti par l’Etat / State Guaranteed loan) of €10.9 million, as well as the liquidity detailed at the time of the publication of our consolidated results a few days ago, we have more than €30 million of available financial resources. This amount can be put into perspective with the cash burn linked to the activity which amounted to €12.5 million during the last financial year ending March 31, 2020, in line with our forecasts. Anticipating an evolution of 10 to 15% of our expenses for the current financial year, not counting our Covid-19 project, our financial visibility remains comfortable and allows us to project beyond 2021.”
As a reminder, the EIB provided support of €20 million to MedinCell, to be received in three instalments in March 2018. The first two were paid in June 2018 and July 2019. This loan is repayable beyond 1 June 2023. At that time MedinCell should already be receiving royalty revenues from the sale of the first products based on its proprietary technology.
Potential upcoming events related to MedinCell’s portfolio of products based on BEPO® technology
• Recruitment completed for the mdc-IRM Phase 3 clinical study, interim analysis expected before the end of 2020
• mdc-CWM Phase 2 clinical study completed, Phase 3 launch planned by the end of 2020
• Advancing a research program for Covid-19 prevention (prophylaxis)
• Formulation selection paving the way for preclinical development for 3 programs by the end of 2020