Poxel's Second Act: Biotech Emerges from Bankruptcy with Bold New Plan

LYON, France – January 30, 2026 – In a pivotal decision that marks a dramatic turnaround, French biopharmaceutical company POXEL SA has officially exited judicial reorganization proceedings. The Commercial Court of Lyon today approved a comprehensive recovery plan, drawing a line under a tumultuous period and charting a new course for the developer of treatments for metabolic diseases.

The ruling concludes an observation period that began on August 5, 2025, providing the company with the legal and financial framework to stabilize its operations and aggressively pursue the development of its promising drug pipeline. The plan, forged through intense negotiations with creditors and backed by shareholders, represents a critical vote of confidence in Poxel's scientific assets and long-term potential.

“This approval by the Commercial Court of Lyon approves the recovery plan prepared by the Company and its creditors during the observation period is an outstanding news,” said Nicolas Trouche, Chief Executive Officer of Poxel, in a statement. “Such approval enables the company to fast-track its commercial development while assuming the settlement of its liabilities.”

The Rocky Road to Reorganization

Poxel's journey into court-supervised protection was not sudden but the culmination of mounting financial pressures. Despite having a marketed product, TWYMEEG® (Imeglimin), for type 2 diabetes in Japan, the company struggled to maintain its financial footing. Financial statements from the first half of 2024 showed a net loss of €7.3 million, and while this was an improvement over the prior year, it underscored an ongoing cash burn.

Efforts to manage its liabilities included significant debt restructuring agreements in 2022 and 2023 with key creditors, notably IPF Partners. These measures temporarily postponed amortization payments and provided breathing room. However, the situation reached a breaking point in February 2025 when shareholders rejected key financial delegations at a general meeting. This rejection triggered a default on existing debt, setting off a cascade of events that could not be reversed.

After subsequent negotiations for alternative financing and partnerships failed to materialize quickly enough, the company's leadership made the difficult decision to seek court protection. On August 5, 2025, the Lyon Court of Economic Activities initiated reorganization proceedings, suspending Poxel’s liabilities and giving it a six-month window to craft a viable survival strategy.

A Financial Blueprint for Survival

The approved recovery plan is a complex tapestry of new financing, debt conversion, and capital restructuring designed to provide a firm financial foundation. At its core are Poxel's long-standing financial partners, IPF Partners and IRIS, who have stepped up with significant commitments.

The plan secures up to €11.25 million in new financing. This includes a €5 million equity line from IRIS, to be drawn over five years at the company's request. IPF Partners has committed to new bond borrowings of €3.75 million, on top of the €2.5 million it provided during the observation period.

Crucially, the plan addresses Poxel's substantial debt load through a debt-for-equity swap. A significant portion of the debt held by IPF will be converted into new shares. This transaction is structured to give IPF a stake of approximately 29.9% of the company’s share capital, transforming a major creditor into a major shareholder with a vested interest in the company's long-term success.

Existing shareholders will be given the chance to participate in the recovery through a capital increase with preferential subscription rights, which will be guaranteed by IPF. While this offers an opportunity to invest at a discount, the overall restructuring will inevitably lead to significant dilution for shareholders who choose not to, or are unable to, participate. Other creditors, including Orbimed, will see their debts settled according to pre-existing contractual terms, providing a clean slate for the company's balance sheet.

A Second Chance for Science

With its financial future secured, Poxel can now refocus on its primary mission: advancing its pipeline of innovative drugs for metabolic and rare diseases. The company's strategy is three-pronged, aiming to extract maximum value from its key assets.

First, Poxel will seek new partnerships to commercialize Imeglimin (marketed as TWYMEEG® by Sumitomo Pharma in Japan) across Asia, prioritizing markets like China that may not require additional clinical trials. Success here could provide a much-needed stream of non-dilutive revenue.

Second, the company will advance the development of PXL770, a first-in-class direct AMPK activator. The focus for this asset is on rare diseases with high unmet need, specifically autosomal dominant polycystic kidney disease (ADPKD), a genetic disorder that causes cysts to grow in the kidneys.

Third, Poxel aims to leverage the value of PXL065, a deuterium-stabilized form of an existing drug, for the treatment of hypertrophic cardiomyopathy (HCM), a disease in which the heart muscle becomes abnormally thick. PXL065 has already shown promise, having met its primary endpoint in a Phase 2 trial for the liver disease MASH.

To support these ambitious scientific goals while maintaining financial discipline, the company is implementing a rigorous cost optimization program. This includes further adjustments to headcount, relying more on outsourced resources, and a significant reduction in administrative and central function costs. This leaner operational model is designed to ensure that the newly raised capital is directed primarily toward value-creating research and development activities. The path ahead for Poxel is now clear, but it requires flawless execution on both the financial and scientific fronts to reward the faith placed in it by its stakeholders.