£69m raise will help genes company 4basebio to grow faster
Over-based 4basebio PLC has raised a total of £69.4million to fuel expansion and innovation.
The sum consists of £40m equity issuance to fund business development, infrastructure enhancement, and support for new DNA modalities and geographic growth, while the £29.4m secondary sale will see a significant change in shareholder composition.
Investors Elevage and M&G are set to have a combined 29.9 per cent stake in the company, with strategic board appointments forthcoming. 4basebio PLC is a spin-out from 2Invest AG (formerly 4basebio AG) and was admitted to trading on the AIM stock exchange in London on 17 February 2021.
The AIM-listed company’s focus is to create GMP-grade synthetic DNA and non-viral nanoparticles which can efficiently and safely deliver fully functional genes.
John Marotta, executive in residence, Patient Square Capital, said: "This investment reflects strong conviction in synthetic DNA's potential to advance novel healthcare treatments, and its place as a significant part of the cell and gene therapy market. We are well aligned with the team at 4basebio and are eager to help them reach their next phase of growth with this investment."
M&G portfolio manager Jeremy Punnett said: "The UK has a wealth of innovative deep tech firms that are breaking the mould, but it is vital they get the long-term investment they need to become the next global champions. M&G's Crossover strategy is playing a leading role in helping businesses to scale and thrive by providing expertise and patient capital.
"We are delighted to partner with Elevage in supporting 4basebio's pioneering work in synthetic DNA, which underpins the development of cell and gene therapies and offers the potential to transform healthcare and save millions of lives. We look forward to being part of their exciting journey and contributing to the advancement of cutting-edge therapies."
As well as progressing its own gene therapy and vaccine programmes for a range of indications, using proprietary cell and tissue targeting vectors and a combination of nucleic acid payloads, 4basebio manufactures and sells proprietary, synthetic DNA and mRNA products for applications in cell and gene therapies and vaccines.
Dr Heikki Lanckriet, CEO and CSO, 4basebio, said: “Our client base and pipeline has grown significantly as a result of strong interest in our synthetic DNA products, and we expect client acquisition and revenue generation to continue accelerating.
“The capital raise announced today will further drive the momentum of the company, and I am pleased to see Elevage and M&G join our shareholder register.”
