Pharnext shareholders approve change in legal and financial framework

PARIS, France, February 27th, 2023, 08:30 am CET – Pharnext SA (FR001400BV89 - ALPHA) (the “Company”), an advanced late-clinical stage biopharmaceutical company developing novel therapeutics for neurodegenerative diseases with high unmet medical need, today reminds that its shareholders were convened to a Combined General Meeting (ordinary and extraordinary) on February 24, 2023 at 4:00 pm. At this meeting, the shareholders were asked to vote on:
- The implementation of a new legal structure with the transformation of the Company, previously incorporated as a public limited company, into a limited partnership with shares (S.C.A.) and, consequently, new governance;
- Various customary resolutions for the purpose of carrying out possible financial transactions.


Thanks to the mobilization of shareholders, the quorum was reached on the first call with 26.695% of voting rights present, represented or by correspondence. All the resolutions submitted to the vote were adopted.

Thus, in order to legally reflect the commitment of its new management to the proper execution of its 2023 roadmap and to protect its activity in a crucial period of value creation, the transformation of the Company into a limited partnership with shares was decided and the new articles of association adopted. Pharnext Développement, a simplified joint-stock company controlled by Néovacs S.A. (FR00140077X1 - ALNEV), will become the sole general partner of the Company and will be jointly and severally liable for the Company's debts.

In terms of governance, Néovacs (represented by Hugo Brugière, CEO of Néovacs and current CEO of Pharnext) will become Chairman of Pharnext Développement, which will in turn become the managing partner of Pharnext. The supervisory board of Pharnext (incorporated as an S.C.A.) will be composed of the current members of the board of directors (with the exception of Hugo Brugière), namely Joshua Schafer, Lawrence Steinman and James Kuo.

In addition, following the delegation of powers granted by the general meeting of February 24, 2023 under the terms of its 8th resolution, Pharnext Développement, as manager of the Company, has decided to reduce the capital due to losses by reducing the par value of the shares. Thus the Company's capital is reduced by an amount of 8,664,945.7851 euros, by reducing the par value of the 875,247,049 shares making up the capital from 0.01 euros to 0.0001 euros each, thus reducing the share capital to 87,524.7049 euros.


Hugo Brugière said: "Thanks to the shareholders present or represented, whom we would like to thank, we are now finalizing the legal organization that will allow us to serenely engage discussions with future financial, pharmaceutical or industrial partners. The fact that Pharnext is now a limited partnership is a guarantee of stability for these future partners. We will soon provide an update on the ongoing discussions with potential partners who were waiting to be confirmed on the governance level.
The new Supervisory Board and I are now fully mobilized on the finalization of our Phase III clinical study, the results of which, if positive, should allow the launch of marketing operations as soon as the marketing authorization is obtained.”


About Pharnext
Pharnext is an advanced clinical-stage biopharmaceutical company developing novel therapies for neurodegenerative diseases currently without satisfactory therapeutic solutions. Pharnext has a first-in-class drug candidate, PXT3003, in development for Charcot-Marie-Tooth disease type 1A (CMT1A), a rare, debilitating, inherited peripheral neuropathy. PXT3003 benefits from orphan drug status in Europe and the United States. In 2018, PXT3003 completed a Phase III clinical trial, the PLEO-CMT trial, with encouraging topline results. This trial was followed by an open-label extension study, the PLEO-CMT-FU trial, with 120 patients continuing treatment with PXT3003. Long-term data suggest a sustained benefit, safety, and efficacy, after 5 years of total trial time. An international pivotal Phase III study of PXT3003, the PREMIER trial, is currently ongoing with 387 CMT1A patients enrolled. PREMIER topline results are expected in Q4 2023. PXT3003 originated from the Pleotherapy™ R&D approach. Pharnext draws the attention of investors to the financial and other risk factors detailed in its financial reports. More information can be found at www.pharnext.com.
Pharnext is listed on the Euronext Growth market in Paris (ISIN code: FR001400BV89).