Poxel's Last Stand: A Biotech's High-Stakes Gamble on Survival

LYON, France – November 24, 2025 – Clinical-stage biopharmaceutical company Poxel SA is on the brink. After falling into receivership proceedings this past summer, the French firm has unveiled a complex and daring recovery plan—a financial tightrope walk designed to secure its future, but at a steep price for its current shareholders. With a critical shareholder vote looming on December 11, the plan represents a last-ditch effort to salvage a promising pipeline of metabolic disease treatments from the ashes of financial distress, offering a stark look at the brutal realities of translating innovation into profit.

The Anatomy of a Turnaround

At the heart of the rescue mission is a new leadership team, installed in August and led by CEO Nicolas Trouche, a specialist in corporate restructuring. Their mandate is clear: avoid liquidation at all costs. The strategy is twofold, combining aggressive cost-cutting with a laser-focused commercialization plan. Operationally, the company is undergoing a significant streamlining. This includes workforce adjustments, outsourcing central functions, and a proposed move from the main Euronext market to the less costly Euronext Growth exchange to reduce administrative and regulatory expenses.

These measures are designed to preserve precious cash and redirect funds toward what matters most: business development. The new strategic priorities are clear and pragmatic. First, Poxel aims to establish new partnerships to commercialize Imeglimine, its type 2 diabetes drug already approved and marketed in Japan, across other Asian territories that do not require new clinical studies. Second, it will promote PXL770 for Autosomal Dominant Polycystic Kidney Disease (ADPKD). Finally, the company will seek to leverage PXL065, which has already shown positive Phase 2 results for metabolic dysfunction-associated steatohepatitis (MASH).

"The new management team has been working hard since August to bring the company out of receivership and avoid liquidation," stated CEO Nicolas Trouche in a recent communication. "The draft recovery plan that we have developed with our partners ensures sustainable financing for the Company and a restructuring of its financial structure, while allowing its shareholders to fully benefit from its implementation."

The Price of Salvation

While the operational and strategic pivot is crucial, the plan's survival hinges on a highly complex financial restructuring underwritten by Poxel's long-standing creditors, IPF Partners and IRIS. These firms are stepping in not just as lenders but as lifeline providers. IPF has committed to a new financing package that brings its total contribution to €6.25 million, while IRIS has agreed to an equity line of up to €1 million per year for five years. This new capital is intended to fund Poxel until it can generate positive cash flow.

However, this salvation comes at a significant cost, particularly for existing shareholders. The plan involves two major capital increases that will cause massive dilution. First, a capital increase with preferential subscription rights will be offered to all current shareholders at a steep discount of 30% to 50% of the current share price—an incentive to participate but a penalty for those who cannot or will not. Second, a reserved capital increase will allow IPF to convert a portion of its debt into equity. This move alone could give IPF a stake of approximately 29.9% in the restructured company, cementing its influence over Poxel's future.

The dilutive impact is stark. According to Poxel's own illustrative tables, a shareholder holding 1% of the company before the transactions who chooses not to exercise their subscription rights could see their stake shrink to as little as 0.47% if other shareholders fully subscribe. The message is clear: participate in the recapitalization or see your ownership stake decimated. To soften the blow, the company plans to issue free 10-year share subscription warrants to all shareholders, offering a long-term, speculative upside if the turnaround succeeds. But for many, the immediate dilution will be the most tangible outcome.

A Pipeline Worth the Price?

The painful financial restructuring begs the question: are Poxel's assets worth the fight? A closer look at the pipeline suggests why creditors are willing to double down. The plan isn't just about saving a company; it's about unlocking the commercial value of its science.

TWYMEEG® (Imeglimin) is the most immediate commercialization opportunity. Already generating royalties from its partner Sumitomo Pharma in the lucrative Japanese market for type 2 diabetes, the strategy to secure new partnerships in other Asian countries is a direct path to near-term revenue growth. This is no longer just a prototype; it's a proven product with expansion potential.

Further down the pipeline, the opportunities are even larger. PXL770 is targeting ADPKD, a genetic kidney disorder affecting millions worldwide with a market projected to exceed $3 billion by 2035. As a first-in-class AMPK activator, PXL770 represents a novel approach in a market with limited treatment options. Success here would be transformative.

Similarly, PXL065, a deuterium-stabilized form of R-pioglitazone, has already met its primary endpoint in a Phase 2 trial for MASH. With a global obesity and diabetes epidemic fueling a silent MASH pandemic, the market for an effective treatment is one of the most sought-after prizes in biopharma. These assets represent significant potential future revenue streams that would be lost entirely in a liquidation scenario.

Judgment Day in Lyon

The entire intricate plan now faces its final hurdles. It requires the blessing of the Commercial Court of Lyon, which is overseeing the receivership. More immediately, it is contingent on the approval of Poxel's shareholders at the General Meeting scheduled for December 11, 2025. The company has been unequivocal: without shareholder approval for the necessary financial delegations, the new financing will collapse, the recovery plan will be void, and judicial liquidation is the likely and final outcome. The fact that no other bidders have emerged underscores the gravity of this vote.

Shareholders are therefore presented with a difficult choice: accept a plan that guarantees severe dilution in exchange for a chance at future recovery, or reject it and face the near-certainty of losing their entire investment. The upcoming vote will be a definitive test of investor faith in the new management, the value of the pipeline, and the viability of this last-chance path from the brink of failure back toward the promise of profit.