BerGenBio ASA Announces Major Rights Issue
BerGenBio ASA, based in Norway, recently declared a fully underwritten rights issue aimed at securing approximately NOK 130 million. This initiative aligns with the company's strategic plans for a merger with Oncoinvent ASA, a reputable player in the field of radiopharmaceutical therapies for cancer.
This rights issue grants existing shareholders preferential subscription rights, enabling them to purchase new shares in the company. The completion of the proposed merger with Oncoinvent is a key milestone that will enable BerGenBio to elevate its operational capacity and bolster its research and clinical endeavors. The merger is anticipated to finalize in mid-September 2025, with the rights issue expected to occur shortly thereafter, around October 2025.
Funding Allocation and Expected Milestones
The net proceeds from this rights issue will be strategically utilized to achieve several critical milestones for the merged entity. These objectives include:
- - Final Phase 1 Ovarian Data: BerGenBio expects to reveal final data from its Phase 1 trial, which focuses on ovarian cancer, during the second half of 2025. This data will encompass 10 patients and is critical for gauging the efficacy of their therapies.
- - Phase 2 Recruitment Completion: The company plans to finalize recruitment for a randomized controlled Phase 2 trial involving 96 patients with peritoneal metastases, stemming from ovarian cancer.
- - Interim Phase 2 Data: An interim data readout is scheduled for the nine-month follow-up in H2 2026. This will offer insights into the progress and effectiveness of ongoing treatments.
- - External Manufacturing Program Commencement: The funds will also support the commencement of scaling up external manufacturing for Radspherin®, one of the innovative therapies developed by Oncoinvent.
BerGenBio and Oncoinvent emphasize that the merger and rights issue will not only strengthen their financial footing but will also expand their capabilities to develop critical therapies, potentially enhancing cancer treatment options globally.
Shareholder Engagement and Future Procedures
For the rights issue to be executed, approval is required from the company’s shareholders at an extraordinary general meeting (EGM), which is scheduled for about August 4, 2025. Shareholders as of the first trading day of the combined company will be eligible to participate in this rights issue, thereby incentivizing current investors to stay engaged in the company’s evolution.
The rights issue is also clearly outlined, anticipating certain conditions such as the approval of the merger and the publication of a prospectus, which is yet to be formulated according to regulatory mandates.
Detailed Share Allocation Principles
The allocation of newly issued shares during the rights issue is intended to cater to existing shareholders' proportionate ownership based on their subscription rights. The procedure outlines several steps where shareholders can over-subscribe and obtain additional shares on a pro-rata basis if interest exceeds the new allocations.
In scenarios where unallocated new shares remain, other subscribers without Subscription Rights will also get the chance to invest, further democratizing the capital raise process. Underwriters will play a vital role in ensuring that any shares left unallocated will be distributed according to the outlined principles.
Conclusion
As BerGenBio ASA moves forward with this rights issue alongside its merger with Oncoinvent ASA, the implications for shareholders and the wider biotech industry are significant. This merger aims to enhance R&D capabilities and drive new innovations in cancer therapies, benefitting countless patients worldwide. Investors and stakeholders will keenly watch the developments in the upcoming months as critical phases of integration and resource allocation begin to take shape.