Saniona Raises $65 million for Rare CNS Diseases

Rare Daily Staff

Saniona, a company developing a pipeline of therapies for rare diseases of the central nervous system, said it raised $65 million (SEK 567 million) through a directed share issue.

The company issued more than 30.6 million shares to a number of U.S. and international institutional investors at a price of $2.12 per share (SEK18.50). The price represents a discount of approximately 45 percent compared to the volume weighted average price on Nasdaq Stockholm for the period of the last 45 days up to and including 7 August 2020.

RA Capital Management led the directed issue with participation from Pontifax Venture Capital and New Leaf Venture Partners among other U.S. and international healthcare investors as well as the Second Swedish National Pension Fund (AP2), the Third Swedish National Pension Fund (AP3) and the Fourth Swedish National Pension Fund (AP4).

Saniona plans to use the proceeds to advance its late-stage clinical trials with Tesomet in two rare eating disorders, hypothalamic obesity and Prader Willi Syndrome, as well as to build its U.S.-based organization in support of these programs.

“The participation of multiple well-respected U.S. and International institutional healthcare investors in this financing led by RA Capital Management demonstrates the significant potential of Saniona’s rare disease pipeline.

With this financing, we will be able to further increase shareholder value by advancing Tesomet to registration for approval, moving our early-stage pipeline into the clinic, and building our U.S. organization,” said Rami Levin, President & CEO of Saniona. “We believe achieving these milestones will position us as potentially the first treatment for two rare diseases, hypothalamic obesity and Prader-Willi Syndrome.”

Photo: Rami Levin, President and CEO of Saniona