Innovation in the field of medicine comes from pharmaceutical companies raising large amounts of money to further their research, whether it stems from private investments to filing an initial public offering (IPO). Although society has seen advances in healthcare like DNA sequencing, there still remains many diseases in the world that are unmet or known. With no approved therapies, it leads to some patients suffering from life-threatening situations. GENFIT a late-stage biopharmaceutical company, aims to target diseases with unmet medical needs, and diagnose diseases that appear under the radar. They file their NASDAQ IPO (initial public offering) in hopes of raising more than $ 132 million to drive their research.
We take a look to see what GENFIT does.
GENFIT is a French biopharmaceutical company that is focused on discovering and developing drug candidates for liver-based diseases. They see value in treating diseases that are not well known or understood.
GENFIT’s lead proprietary compound, elafibranor, a drug candidate that is undergoing phase 3 study (RESOLVE-IT). GENF has an ambitious goal of developing a program aimed at giving patients a blood-based test for NASH diagnosis.
GENFIT phase 2 results for 45 PBC patients treated with ursodeoxycholic acid showed no positive effect. As for their drug candidate their primary goal was met, beating a placebo in lowering levels of serum alkaline phosphatase (ALP), an enzyme that can indicate just how well a person’s liver or gallbladder are functioning. ALP levels went down to about 48% in patients on an 80-gram dose of elafibranor while patients that received a 120-gram dose saw a 41 % drop. Patients taking the placebo saw an increase in ALP.
GENFIT is among the few to make it this far. Other biotech companies trying to get NASH out on the commercial market as well, not surprise since it is an untap market with a 30 billion valuation by 2026. Genfit’s ambition may slow down, since Inventiva, another company trying to target unmet diseases, saw its stock tumble in a week. The stock dropped because it failed to reach its primary objective in Phase 2. Inventiva targetted systemic sclerosis, an autoimmune disease characterized by a buildup of scar shows its effect on the skin and internal organs. Its tumbling gave a wake up call to investors, that not all drugs in clinic is the ticket to treating diseases.
Gunning for 132 million dollars, Genfit plans to offer about 5 million shares with each share going for about $26.33 dollars. The company intends to use 50 million dollars raised into finishing their phase 3 in elafibranor. 15 million will be invested in building out GENFIT’s manufacturing goals and 35 million will go towards wrapping up clinical trials of phase 3 for elafibranor.
132 MILLIION NASDAQ LISTING (GNFT)
Will Genfit bring success to those who invest early? Who knows, it may be a longer road than we expect.
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