BioGaia's board of directors has resolved to invest a further SEK 35 million in the subsidiary Infant Bacterial Therapeutics AB (IBT), in addition to the approximately SEK 47 million previously decided¹. IBT has carried out a new issue of 40,000 shares in which all shares have been subscribed for by BioGaia AB, thereby providing the company with proceeds of
approximately SEK 53 million. BioGaia's total investment in IBT thus amounts to approximately SEK 82 million and its holding to 94.5 per cent.
Efforts to evaluate the possibility for a separate listing of IBT are continuing. As previously communicated, IBT has an estimated capital need of approximately SEK 130 million to finance the first clinical trial. Following the issue, IBT's continued capital need for implementation of the first clinical trial is currently estimated at approximately SEK 100 million.
IBT's work is aimed at developing a unique orphan drug to prevent the fatal disease necrotising enterocolitis (NEC). The project has progressed more rapidly than previously scheduled and according to the updated development plan, IBT
expects to conduct two clinical trials within the next three years.
Necrotising enterocolitis (NEC) kills approximately 3,700 European and 1,500 US infants per year. NEC has an unpredictable, spontaneous, and acute onset and is untreatable, except through major surgery. The long-term complications for infants who survive NEC vary, but include impairment such as short bowel syndrome, prolonged neonatal hospitalisation and adverse neurodevelopmental outcomes, including cerebral palsy, cognitive impairment, and visual and hearing impairment.
For more information see previous press releases dated 12 June and 24 June 2015, respectively.