Inventiva SA, a company developing therapies for metabolic diseases, saw its stock (IVA) skyrocket over 31% on Monday, driven by a significant funding announcement. The company secured a substantial financial boost of 94.1 million euros ($99.36 million) immediately, with the potential to reach up to 348 million euros ($379.55 million). This investment will be crucial in propelling the completion of the Phase 3 NATiV3 MASH trial, which evaluates the efficacy and safety of lanifibranor, Inventiva’s lead candidate for the treatment of non-alcoholic steatohepatitis (NASH). This funding will also be instrumental in preparing for potential marketing approval and commercialization of the drug.
The impressive financing package was led by prominent investors including New Enterprise Associates, BVF Partners LP, and Samsara BioCapital, with participation from existing and new investors. This strong investor interest signals a significant vote of confidence in Inventiva’s potential and its lead drug candidate.
The company’s strategic move comes after a tumultuous period following a temporary pause in the NATiV3 trial due to a serious adverse reaction involving elevated liver enzymes in a patient undergoing treatment. However, the company addressed the issue, lifting the pause in March, allowing the trial to resume screening activities.
The secured funding will also have a significant impact on Inventiva’s management structure. Pursuant to the Transaction, and subject to shareholder approval by December 16, 2024, Mark Pruzanski will assume the role of Chairman, and Srinivas Akkaraju will become a director. Each of the top four investors will have the opportunity to nominate up to four additional directors, with at least two of them being independent. These new directors will replace existing directors, with the exception of Frederic Cren, Mark Pruzanski, and Srini Akkaraju.
This significant injection of capital provides Inventiva with the necessary resources to navigate the critical next steps in the development and potential commercialization of lanifibranor. It also demonstrates the confidence investors have in the long-term prospects of the company and its ability to develop a successful treatment for NASH, a growing global health concern.
The robust volume of 8.55 million shares traded on Monday, compared to the average volume of 9.91k, further highlights the market’s enthusiasm surrounding this development. The strong investor interest and the company’s strategic approach make Inventiva a compelling player in the NASH treatment landscape, with a promising future ahead.
