We are right in the middle of an exciting period for Cyxone with a lot of moving pieces and I get a lot of questions from shareholders that I would like to answer, but I am not always able to for different reasons. Our biggest focus in the recent months has been to finalize the financing of the phase 2b study of Rabeximod. We have made great progress, but the process has, unfortunately, taken longer than what I had hoped. The reason for this is my conviction that the right partnership will benefit the company in the best possible way in the long-run. Today, as a publically traded company, you get approached by investors with various complex financing structures and I am careful as I would like to find a solution that is beneficial for both Cyxone and our shareholders.
An update on the financing of Rabeximod
In earlier newsletters and presentations, I have mentioned that I, several times, have traveled through Europe and over the Atlantic to meet interested institutional investors. We were not prepared to get this much attention when we embarked on this journey, but we can now proudly say that there is a great interest in both Cyxone and Rabeximod. The downside to this, however, has proven to be the vast time required for the many meetings, with all parties, in different countries. The obvious benefit is that our confidence has been greatly strengthened in our ambition to find one or more investors that share Cyxone’s vision and the pursuit of innovative drugs within autoimmune diseases. Several of these investors are experienced in our disease areas and will be able to bring strategic competence as well as entrants to acquiring companies.
So, where are we now? As mentioned, discussions with several parties and with several investors are ongoing. The discussions are insightful and interesting, but they demand a lot of time, this while Cyxone’s operations and ongoing studies with T20K require my attention. These discussions may look different, but I have received a lot of detailed questions among other things. Although I can testify to this being a time-consuming process, for all parties, it is important to remind oneself that this is not something that is initiated without a real and serious interest. I am not in the least worried that we will not be able to reach our financing target, but I cannot reveal more at this time.
We are proud that Cyxone, over such a short period of time, has managed to build a strong development portfolio within autoimmune diseases through Rabeximod in phase 2b for rheumatoid arthritis, T20K that soon will be in phase 1 for multiple sclerosis and potentially an early development candidate within inflammatory bowel disease (IBD). This portfolio means a risk diversification for our shareholders and its potential is part of the assessment when investors consider whether Cyxone is a good fit for their investment portfolio. It is beyond all my doubt that our potential reaches far beyond our current market capitalization and we hope that our work soon will reward our loyal shareholders. Finally, I would also like to emphasize that we are following the planned timeline for our studies, despite the time-consuming financing process. A big thank you to all of our shareholders for your support, patience and understanding that we cannot control the timeframe of certain processes.
Malmö in April 2018
Kjell G Stenberg