Ghent-based Sequana Medical, a pioneer in treating fluid overload for liver illness, coronary heart failure, and most cancers, has secured €24 million in recent financing, extending its money runway till the tip of 2025.
This funding package deal features a €4 million unsecured subordinated convertible mortgage from main shareholders Companions in Fairness and EQT, in addition to a €20 million share subscription facility with GEM World Yield LLC SCS. The corporate additionally has the choice to extend GEM’s dedication to €60 million, as soon as the preliminary quantity is drawn down.
CEO Ian Crosbie shared his optimism in regards to the financing and the upcoming industrial rollout: “2025 is a landmark yr for Sequana Medical with the US industrial launch of the alfapump deliberate for mid-Q3, following the FDA approval of our PMA for this breakthrough system in December 2024. We’re very happy with the sturdy suggestions we’ve acquired from US hepatologists who’re keen to supply the alfapump to their sufferers, and the potential that it provides to nearly eradicate the necessity for therapeutic paracentesis and remodel their high quality of life.
“By means of this financing package deal, we’ve the platform to show the clear market alternative for alfapump, and our potential to successfully entry this by our small specialty industrial group focusing on US liver transplant centres. We’re delighted with the continued sturdy assist from our key shareholders and lenders, in addition to the brand new fairness dedication from GEM.”
Based in 2006, Sequana Medical has developed the alfapump, an implantable pump system designed to eradicate the necessity for repeated therapeutic paracentesis in liver illness sufferers. Having secured FDA approval for its Pre-Market Approval (PMA) software in December 2024, the corporate is making ready for its US industrial launch in mid-Q3 2025, initially focusing on 90 liver transplant centres.
The €4 million convertible mortgage will probably be supplied by Companions in Fairness and EQT, with the potential for extra lenders from a earlier financing spherical to roll over their investments into the brand new mortgage. The phrases permit for conversion into firm shares at a 25% low cost to the volume-weighted common buying and selling value, providing flexibility for traders whereas guaranteeing the corporate maintains liquidity throughout its crucial US enlargement.
In the meantime, the €20 million share subscription facility with GEM allows Sequana Medical to subject shares over a three-year interval, with an possibility to increase this dedication as much as €60 million. GEM, a Luxembourg-based different funding group with workplaces in Paris, New York, and the Bahamas, has structured the settlement to offer funding on demand, permitting the corporate to handle its monetary technique in alignment with industrial milestones.
Moreover, Sequana Medical has renegotiated its present debt agreements, securing improved compensation phrases for loans from Kreos Capital and PMV Standaardleningen NV, additional strengthening its monetary place.
With US commercialisation on the horizon, Sequana Medical is positioning itself for a pivotal yr. The alfapump system, which has already been designated a Breakthrough Gadget by the FDA, has reportedly already demonstrated its potential to drastically enhance affected person high quality of life by decreasing the necessity for repeated hospital visits.
The corporate plans to launch with a small, specialised gross sales drive, focusing on high-value liver transplant centres that deal with the vast majority of circumstances.
By securing this financing, Sequana Medical goals to execute its US market technique effectively, whereas persevering with growth of its Direct Sodium Elimination (DSR) remedy, which has proven promising leads to addressing fluid overload in coronary heart failure sufferers.
