STOCKHOLM, Nov. 6, 2020 /PRNewswire/ -- The Board of
Directors of Moberg Pharma AB (OMX: MOB) today
announces its intention to distribute the operations of
BupiZenge® (BUPI) to the shareholders of Moberg
Pharma by distributing 90 percent of the shares in a subsidiary
(name to be changed to OncoZenge AB) through a so-called Lex ASEA
distribution, and convenes an extraordinary general meeting to
resolve accordingly. The business consists of developing the BUPI
project under the brand name BupiZenge® for treatment of
oral mucositis. Moberg Pharma estimates the capital requirement to
take BupiZenge® through phase 3 at SEK 60 million. Moberg Pharma is therefore
evaluating the opportunity to distribute OncoZenge according to Lex
Asea and list its shares on Nasdaq First North Growth Market.
Moberg Pharma has hired Erik Penser Bank to evaluate opportunities
for financing OncoZenge as a separate company.
Moberg Pharma has since 2014 been developing
BupiZenge® for treatment of pain in connection with Oral
Mucositis ("OM"). Globally, around 5 million people suffer
from OM after cancer treatment. OM is an inflammation of the mucous
membranes in the mouth and throat, which results in painful ulcers.
OM is considered the most debilitating side effect of radiation
therapy and chemotherapy and commonly occurs. After radiation
therapy in the head and neck region, 90 percent of patients develop
OM, and of the patients who are treated with chemotherapy around 30
percent are affected. OM causes severe pain, difficulty to swallow
and talk, and can lead to interruptions in cancer treatment as well
as increased health care costs.
In a previous phase 2 study on cancer patients,
BupiZenge® has demonstrated statistically significant
pain relief in the oral cavity and throat; the pain level in the
mouth was reduced by 50 percent. compared to the current treatment.
Since Moberg Pharma divested its OTC business at the start of 2019,
the company has focused on the development of MOB-15 for treatment
of nail fungus. To facilitate financing of the further
development of BupiZenge® and capture the value in the
project, the Board of Directors of Moberg Pharma has decided to
propose that BupiZenge® be distributed to Moberg
Pharma's shareholders through a distribution of shares in a
subsidiary (name to be changed to OncoZenge AB).
The next step for BupiZenge® is a clinical phase 3
study that can serve as the basis for registration in the European
market as well as additional markets. A phase 3 study is expected
to commence early in 2022 with the results obtained in 2023. To
finance the clinical study as well as OncoZenge's other operations
until clinical data can be reported, around SEK 60 million in
financing is needed. Moberg Pharma has invested approximately
SEK 50 million in
BupiZenge® since the project's start and the book value
of BUPI amounts to approximately SEK 22
million.
"After a completed phase 3 study and registration,
BupiZenge® will be of great benefit to all the
patients who suffer from severe mouth pain during cancer treatment.
I look forward to leading OncoZenge as a separate company and
thereby being able to fully focus on the potential of our drug
candidate," says Pirkko
Tamsen, CEO of OncoZenge.
"The spin-off into a separate company provides the
opportunity to realize the potential in
BupiZenge® and create significant value for our
shareholders," says Anna
Ljung, CEO of Moberg Pharma.
Distribution of shares in OncoZenge
The Board of Directors of Moberg Pharma is proposing that 90 per
cent of the shares in OncoZenge be distributed to Moberg Pharma's
shareholders according to Lex ASEA, which will be all of Moberg
Pharma's shares in OncoZenge on the distribution date. The
remaining shares will be held by management, the innovators behind
the project and a number of key persons. The CEO of OncoZenge is
Pirkko Tamsen, who has extensive
experience as CEO of drug development companies as well as
experience from Astra and Kabi. The proposal to distribute shares
in OncoZenge will require the approval of an extraordinary general
meeting of Moberg Pharma, which Moberg Pharma has convened today.
Before the shares are distributed, Moberg Pharma intends to
transfer the BUPI assets to OncoZenge, subject to the Extraordinary
General Meeting's approval in accordance with what is stated in
more detail in the notice to the Extraordinary General Meeting.
The Board of Directors proposes that ten (10) ordinary shares in
Moberg Pharma as of the record date for the distribution of shares,
shall entitle the holder to subscribe for one (1) share in
OncoZenge. If the shares are not evenly dividable by ten, fractions
of shares are received. All such fractions will be merged into
whole shares and afterwards sold through the care of Erik Penser
Bank. The sales proceeds will be paid out in cash by Euroclear,
without deducting a brokerage fee.
Financing of OncoZenge
To finance the clinical phase 3 study as well as other operations,
OncoZenge intends to secure total financing of approximately
SEK 60 million. Moberg Pharma has
engaged Erik Penser Bank to evaluate opportunities for such
financing.
Listing on Nasdaq First North Growth Market
In the first quarter of 2021, OncoZenge intends to apply to list
its shares for trading on Nasdaq First North Growth Market.
Advisor
Erik Penser Bank is serving as financial advisor and Gernandt &
Danielsson Advokatbyrå is serving as legal advisor to OncoZenge in
connection with the distribution, financing and listing of
OncoZenge.
CONTACT:
For additional information, please contact:
Pirkko Tamsen, CEO OncoZenge,
telephone: +46 760 09 84 99, e-mail:
pirkko.tamsen@oncozenge.se
Anna Ljung, CEO Moberg Pharma, telephone: +46 707 66 60 30,
e-mail: anna.ljung@mobergpharma.se
About this information
This information is information that Moberg Pharma AB (publ) is
obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact persons set out above, at 8.00 a.m. CET on November
6, 2020.
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Moberg Pharma intends
to distribute and separately list BupiZenge® (BUPI)
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SOURCE Moberg Pharma