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Mendus enters alliance with NorthX and announces a directed share issue

Erik Manting

Mendus has entered into a manufacturing alliance with NorthX Biologics and has announced a directed share issue and a fully secured rights issue of units totaling approximately 317 million SEK in financing.

In the alliance with NorthX, Mendus and NorthX will co-establish cell therapy manufacturing capabilities in Sweden, which will be used for late-stage development and commercial manufacturing of Mendus’ lead asset vididencel.

Flerie will initially invest 90 million SEK in Mendus

In conjunction with the NorthX collaboration, Mendus has entered into an agreement with Flerie Invest, a Swedish investment firm. Flerie will initially invest 90 million SEK in Mendus to support the NorthX alliance. The planned investment is scheduled to cover all necessary activities until Q2 2025, including adjustments to current NorthX facilities, tech transfer of the vididencel manufacturing process and manufacturing of vididencel batches for a pivotal-stage clinical trial.

Establishing large-scale manufacturing is a key element of our development strategy for vididencel.”

“Establishing large-scale manufacturing is a key element of our development strategy for vididencel. The alliance with NorthX as Sweden’s emerging center of excellence for manufacturing of this drug class, supported by an investment by Flerie, is a major step for Mendus in this regard, as it brings together the required funding and the opportunity to establish a dedicated facility to manufacture vididencel for the next stage of clinical development and, eventually, commercialization,” says Erik Manting, Chief Executive Officer of Mendus.

Following the successful completion of the financing transaction, Flerie will join Van Herk Investments and the Fourth Swedish National Pension Fund (AP4) as a major Mendus shareholder. Ted Fjällman, Chief Executive Officer at Flerie, is expected to join Mendus’ Board of Directors, subject to shareholder approval.

“Mendus’ approach to develop vididencel as a cancer maintenance therapy has the potential to prolong survival for many patients, based on an impressive doubling of median overall survival compared to the current standard of care in the most recent Phase 2 read-out in AML,” says Ted Fjällman, Chief Executive Officer at Flerie.

Approximately 317 million SEK in financing

The collaboration with NorthX and the investment by Flerie are part of a larger financing transaction of Mendus. In connection with the alliance, the Board of Directors of Mendus has resolved on a capital raise of approximately 317 million SEK, comprised of a directed issue of approximately 90 million SEK to Flerie, consisting of shares and warrants of series TO3, in combination with a rights issue of units of approximately 227 million SEK, consisting of shares and warrants of series TO3.

The collaboration with NorthX and the investment by Flerie are part of a larger financing transaction of Mendus.”

The Rights Issue is fully secured through subscription and guarantee commitments. Upon full exercise of the warrants of series TO3, Mendus will receive approximately up to an additional 91 million SEK. The transaction is conditional upon approval by an Extraordinary General Meeting, expected to be held on 10 July 2023, states the company.

Photo of Erik Manting: Mendus

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