LONDON, UK / ACCESSWIRE / February 22, 2018 / TxCell (PARIS: TXCL) has disclosed that it has a viable manufacturing route for its novel CAR Treg products. This uses a stable but low-frequency Treg cell type. The TxCell methodology uses a robust design to give low inter-patient variability with potentially consistent therapeutic results. Regulatory filings for a dose-ranging clinical trial are expected by late 2018. On the financial side, TxCell will need to draw at least €10m of a new, less onerous set of convertible loans to support CAR Treg development. The indicative valuation has been increased to €87.9m from €84.4m as probabilities have been slightly adjusted. Cash on 31 December 2017 was €4.9m.
Cash on 31 December 2017 was €4.9m, reflecting an advance payment of €1.4m of the tax credit for 2017 plus careful cost control, although no balance sheet has been published yet. TxCell has up to €13.5m of convertible loans available in 2018 out of a €15m drawdown facility, now on better terms. Now that a manufacturing route for CAR Tregs has been clarified, we have increased the probability of a transplant CAR Teg to 13.5% (formerly 12.5%). This raises the indicative value to €87.9m (formerly €84.4m). We assume at least a €10m drawdown of convertible loans in 2018 plus a granted €1.2m Bpifrance loan. The use of convertible loans will lead to further dilution over 2018. TxCell is becoming well placed to enter a CAR Treg partnering agreement, although the timing and size of any deal remains uncertain.
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