Xbrane Biopharma AB has secured a conditional SEK 60 million financing agreement with Fenja Capital II A/S as the Swedish biotech company prepares for a critical FDA decision on its Lucamzi biosimilar on October 21st. The financing arrangement serves as a proactive measure to ensure working capital availability should regulatory approval face unexpected delays.
Lucamzi BLA Under FDA Review
Xbrane's proposed Lucentis biosimilar, branded as Lucamzi for the US market, is currently under FDA review with the Biologics License Application (BLA) decision scheduled for October 21st, known as the BsUFA date. The company has established its commercial supply chain through contract manufacturers in preparation for potential market launch.
During the third quarter of 2025, the FDA conducted re-inspections of both production sites involved in Lucamzi manufacturing. These inspections resulted in several observations, which the company characterizes as typical for any FDA inspection process. Notably, there were no repeat observations from the FDA inspections conducted in 2024 that were related to the FDA-requested reconstruction of the sites.
Both manufacturing sites responded to all FDA observations within the standard 15-day response timeframe. While Xbrane and its partners believe the responses adequately address the FDA's concerns and that the sites operate according to FDA Good Manufacturing Practice standards and guidance, the company acknowledges that site approvability ultimately depends on the FDA's proprietary assessment.
Strategic Financial Positioning
On October 13th, 2025, Xbrane implemented a 1:125 reverse share split and amended its articles of association. This structural change aims to streamline the company's share structure and potentially make it more accessible to institutional investors while addressing the effects of prior dilution.
The conditional financing agreement with Fenja Capital II A/S directly addresses liquidity concerns tied to possible FDA delays. Before these measures, liquidity and regulatory timing represented the company's primary short-term risks. The conditional financing arrangement is designed to temper immediate working capital concerns, allowing management to focus more clearly on regulatory and commercial outcomes for Lucamzi.
Market Outlook and Valuation Perspectives
Despite the proactive financial measures, regulatory uncertainty remains a key factor in Xbrane's investment narrative. Fair value estimates from Simply Wall St Community members show significant variation, ranging from SEK 0.44 to SEK 81.25, reflecting wide disagreement about the company's growth prospects and risk profile.
The company's investment story centers on the biosimilars market potential, pipeline advancement, and successful FDA approval of Lucamzi. While existing risks around profitability, dilution, and execution remain, the new financial measures help reduce short-term uncertainty as the FDA decision date approaches.
Xbrane maintains cautious optimism regarding approval on the upcoming BsUFA date, but the conditional financing solution demonstrates management's commitment to maintaining operational flexibility regardless of the regulatory outcome.
