French biotechnology company Pharnext has entered into a convertible bond financing agreement with Global Tech Opportunities 13 to raise EUR 81 million (USD 99 million) spread out over 36 months in 35 tranches. 

The company will issue 8,100 warrants at a par value of EUR 10,000 (USD 12,173), which can be converted into new shares or be exchanged for existing shares. The company already issued 4,300 warrants for the first 16 tranches on June 04, 2021, and the first tranche with a gross par value of EUR 5.5 million (USD 6.7 million) has also been drawn. Shareholder approval is required to draw funds from the 17th tranche onwards. 

The proceeds will be used to continue and progress the Phase 3 clinical study of PXT3003, the company’s lead candidate to treat Charcot-Marie-Tooth disease type 1A (CMT1A). The company believes the funding improves its cash runway through Q1 2022.

Founded in 2007, Pharnext develops new therapeutic solutions using what it calls the Pleotherapy approach, a combination of low doses of existing drugs to develop treatments by matching the properties of drug combinations with specific diseases. The company focuses on neurodegenerative and metabolic diseases and has two drug candidates in its clinical pipeline, PXT3003 to treat CMT1A and PXT864 to treat Alzheimer’s disease.