The company is now making a new share issue with preferential rights for existing shareholders. New shareholders can subscribe without preferential rights or purchase subscription rights in the market. Intervacc has received subscription and underwriting commitments of approximately SEK 49 million, corresponding to approximately 80% of the rights issue.
- Intervacc’s technical platform is proven and based on recombinant proteins. The risk of serious side effects is significantly reduced with this technology.
- The first vaccine candidate Strangvac®, against the highly contagious equine disease strangles, is in commercialization phase and is expected to reach the market by 2020. Strangvacs® Potential market is estimated to be SEK 4 billion annually in Europe and the US. There is currently no effective vaccine against strangles and Strangvac® has demonstrated a very high level of protection and is also traceable through DIVA.
- In Strangvac’s® commercial production phase, vaccine substance corresponding to approximately 3 – 5 million doses will be produced. This “cost” should be seen as an investment because this amount of vaccine substance has long shelf life and is stored for future sales.
- The Intervacc portfolio also includes a new vaccine candidate for a serious streptococcal infection on pigs and a vaccine candidate for udder inflammation of cows caused by Staphylococcus aureus.
- The increasing global problem of antimicrobial resistance, along with increased insight into the importance of good animal health, drives the market for vaccines forward. The global market for veterinary vaccines is expected to grow 9% annually in the coming years.
- Intervacc’s subsidiary Nordvacc sells veterinary vaccines and pharmaceuticals in the Nordic and Baltic countries. Nordvacc’s distribution network will also sell the company’s self–‐produced vaccines, which leads to very good margins in this geographical area.
- The ongoing issue means that new and old investors can invest in Intervacc at a pre–‐ money valuation of about SEK 46 million (approx. EUR 4,5 million)
Background and motive
In connection with the IPO early 2017, free warrants were issued. However, these will, with great probability, not be used to subscribe for new shares in March 2018, hence the current rights issue. The motivation for the offer is to move Intervacc into a commercial phase from being a research and development company with Strangvac® as the main product, to become a company with broadened research portfolio in vaccine and continue the development of a clear sales and marketing organisation. The proceeds are essentially intended to be used as follows (in parentheses, the approximate percentage of cost distribution between the different activities):
- Transfer the manufacturing technology of Strangvac® and produce two commercial batches of Strangvac® each with 30,000 doses. In this production, vaccine substance corresponding to approximately 3 – 5 million doses are produced. (50 percent)
- Operating costs. Includes marketing, patents, R&D, salaries, rents, financial costs, etc. (30 percent)
- Further development of INV274, a streptococcal vaccine for piglet. Intervacc has shown that INV274 against Streptococcus suis given promising results in the target animal. The vaccine is based on the same technology as Strangvac®. (15 percent)
- Further development of INV412, a vaccine against udder inflammation caused by Staphylococcus aureus. (5 percent)