Modus Therapeutics, a Swedish biotech company listed on Nasdaq First North Growth Market, has successfully secured a fully subscribed rights issue worth SEK 28.3 million to advance the clinical development of its lead drug candidate sevuparin. The financing will support the completion of an ongoing Phase II study in chronic kidney disease with anemia and fund operations through the end of 2026.
Strong Investor Support Demonstrates Confidence
The rights issue received substantial backing from major shareholders, with Karolinska Development, Hans Wigzell, and Anders Bladh providing free subscription commitments totaling SEK 17.7 million, representing 62.7% of the total offering. External parties covered the remaining 37.3% through guarantee commitments of SEK 10.6 million.
"Securing a fully subscribed rights issue in today's challenging market is a clear sign of strength for Modus Therapeutics and its clinical strategy," said Viktor Drvota, CEO of Karolinska Development, which holds a 66% ownership stake in Modus Therapeutics.
Sevuparin Targets Multiple High-Need Therapeutic Areas
Sevuparin is a clinical-stage, proprietary polysaccharide drug with a multimodal mechanism of action that includes immunomodulating, anti-adhesive, and anti-aggregate effects. The compound is designed as a heparinoid with markedly attenuated anti-coagulation features, allowing for severalfold higher doses compared to regular heparinoids without associated bleeding side effects.
The drug candidate is being developed for several major unmet medical needs, including anemia in kidney disease and other chronic inflammatory conditions, severe malaria, and sepsis. Two routes of administration are currently being tested: an intravenous formulation for in-patient use and a subcutaneous formulation for ambulatory and home care administration.
Phase II Study Progress and Timeline
A Phase II study of sevuparin in chronic kidney disease with anemia is currently underway, with the first part nearing completion. The data from this initial phase will inform dose selection for the second part of the study, which is expected to begin patient recruitment in the fourth quarter of 2025. The complete study is anticipated to conclude in the second half of 2026.
In parallel, Modus is conducting a clinical program with sevuparin in severe malaria in collaboration with Imperial College London. Patient recruitment was completed during the first half of 2025 for a Phase I study in pediatric patients from Kenya and Zambia, with funding provided by Wellcome.
Rights Issue Structure and Terms
The rights issue comprises 8,984,724 units, with each unit consisting of nine shares, three warrants of series TO 2026, and four warrants of series TO 2030. The subscription price has been set at SEK 3.15 per unit, corresponding to SEK 0.35 per new share, with warrants issued free of charge.
The TO 2026 warrants entitle holders to subscribe for new shares during April 13-24, 2026, at SEK 0.35 per share, potentially providing an additional SEK 9.4 million if fully exercised. The TO 2030 warrants allow annual exercise during the last two weeks of September from 2026 to 2030 at SEK 0.40 per share, potentially generating an additional SEK 14.4 million if fully utilized.
Regulatory Approval and Timeline
The Board of Directors' decision regarding the rights issue is subject to approval by an extraordinary general meeting scheduled for July 29, 2025. The record date for participation is set for August 8, 2025, with the subscription period expected to run from August 12-26, 2025.
As part of the financing arrangement, a bridge loan of approximately SEK 5 million from Karolinska Development will be converted into equity. The company has also decided to advance the publication of its second quarter 2025 interim report to August 7, 2025, due to the rights issue timing.
