OSE Immunotherapeutics - €10m funding secures runway to Q323

OSE Immunotherapeutics (OSE) has announced the receipt of €10m in financing from the European Investment Bank (EIB), which we estimate will secure management’s communicated cash runway into Q323. The funding has been received as the second tranche of a facility that was previously agreed with the EIB, with the first €10m having being drawn down by the company in July 2021. The funding comes with a linked warrant issue that gives the EIB the potential right to 2.97% of share capital (undiluted), if exercised from 2027. While this is potentially dilutive for investors, the company has arrangements in place to limit the risk of dilution. The €10m will provide support to OSE’s development programmes, in our view, as FY23 is expected to see Tedopi (the company’s cancer vaccine) enter a second Phase III clinical trial in non-small cell lung cancer. We value OSE at €398.3m or €21.5 per share (previously €398.4m or €21.5 per share).