Tevogen Bio Enters Agreement to Receive Up To $10 Million of Non-Dilutive Grant Funding

Rhea-AI Summary

Tevogen Bio (Nasdaq: TVGN) has secured a non-dilutive grant agreement with KRHP for up to $10 million in funding. The company received an initial contribution of $2 million, with an additional $8 million potentially available subject to KRHP's review of company activities. This grant follows a previously announced $36 million loan agreement from 2Q24.

The funding will support Tevogen's development of T cell therapeutics for cancer and viral infection treatments, as well as expand its artificial intelligence initiative, Tevogen.AI. The company is collaborating with Microsoft and recently hosted two panels at the JPMorgan Healthcare Conference, focusing on AI applications in biopharma.

Positive

• Secured non-dilutive grant funding of up to $10 million
• Initial $2 million already received
• Grant does not dilute existing shareholder value
• Follows $36 million loan agreement from 2Q24
• Strategic partnership with Microsoft for AI development

Negative

• Additional $8 million contingent on KRHP 's review
• Company affiliated with existing investor, indicating possible funding sources

Insights

Financial Analyst

The secured $2 million initial grant, with potential for an additional $8 million, marks a strategic financial milestone for Tevogen Bio, particularly following their $36 million loan agreement from 2Q24. The non-dilutive nature of this funding is crucial, as it allows capital injection without equity dilution - a significant advantage in the current biotech funding environment where preserving shareholder value is paramount.

The conditional nature of the remaining $8 million creates a performance-based incentive structure, while the grant's connection to an existing investor suggests strong internal confidence in Tevogen's execution capability. The focus on AI development, particularly through Tevogen.AI and the Microsoft partnership, positions the company at the intersection of two high-growth sectors: biotech and AI. This convergence could potentially accelerate drug development timelines and reduce operational costs, creating a more efficient R&D model.

The strategic allocation towards AI development, particularly with Microsoft's involvement, could provide a competitive edge in drug discovery and development efficiency. This is especially relevant given the broader industry trend toward AI integration in pharmaceutical research, where companies achieving successful AI implementation have seen significant reductions in development timelines and costs.

Technology Analyst

The collaboration with Microsoft, a leading enterprise AI provider, significantly enhances Tevogen's AI capabilities. Microsoft's Global Chief Medical Officer's involvement suggests this isn't merely a vendor relationship but a strategic partnership that could accelerate Tevogen's AI implementation in drug discovery and development processes.

The focus on AI-driven technologies in drug discovery is particularly timely, as successful AI implementation has shown potential to reduce drug development timelines by 30-50% across the industry. Tevogen.AI's development, supported by this grant funding, could enable more efficient candidate screening, faster clinical trial design and improved patient stratification - all critical elements in reducing the typical 10-12 year drug development cycle.

The company's presence at the JPMorgan Healthcare Conference, specifically leading AI-focused discussions, positions them as thought leaders in the biotech-AI convergence space. This visibility, combined with Microsoft's partnership, could accelerate their AI capabilities and potentially lead to first-mover advantages in AI-driven immunotherapy development.

• The grant funding will further Tevogen Bio’s mission to develop therapies for treatment of cancers and viral infections.
• Tevogen Bio may also utilize the grant funding to further expand its artificial intelligence effort.
• This grant is in addition to the previously announced $36 million loan agreement from 2Q24.
  

WARREN, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Tevogen Bio (“Tevogen Bio Holdings Inc.” or “Company”) (Nasdaq: TVGN), a clinical-stage specialty immunotherapy biotech, announced it may receive up to $10 million of non-dilutive grant funding. Tevogen Bio signed a grant agreement with KRHP LLC, receiving an initial contribution of $2 million. An additional $8 million may be contributed at a future date, contingent on KRHP LLC’s review of the Company’s activities. The grant is intended to further Tevogen Bio’s mission to develop T cell therapeutics addressing the significant unmet needs of large patient populations for treatment of cancers and viral infections. KRHP LLC is affiliated with an existing Tevogen investor.

The receipt of the grant was not dilutive to existing Tevogen Bio shareholders and comes at a time when the Company is acutely focused on furthering its mission through expansion of its artificial intelligence efforts, Tevogen.AI. Tevogen Bio remains committed to efficient operations and anticipates utilizing the grant in a judicious manner.

"Tevogen Bio is grateful to receive grant funding from KRHP LLC and plans to deploy the funds in part to further expand efforts in AI. We are working with Microsoft (Nasdaq: MSFT) and our team hosted two panels during the JPMorgan Healthcare Conference earlier this month, including one titled AI in Biopharma: Next Frontier of Medical Innovation. At that panel, Dr. David Rhew, Global Chief Medical Officer of Microsoft and Mittul Mehta, Head of Tevogen.AI discussed the possibility of AI-driven technologies revolutionizing drug discovery, accelerating development timelines, enhancing patient accessibility, fostering quicker innovation, and significantly reducing operating costs," said Dr. Ryan Saadi, Chairman and CEO of Tevogen Bio.

About Tevogen Bio

Tevogen Bio is a clinical-stage specialty immunotherapy company harnessing one of nature’s most powerful immunological weapons, CD8+ cytotoxic T lymphocytes, to develop off-the-shelf, genetically unmodified precision T cell therapies for the treatment of infectious diseases, cancers, and neurological disorders, aiming to address the significant unmet needs of large patient populations. Tevogen Bio Leadership believes that sustainability and commercial success in the current era of healthcare rely on ensuring patient accessibility through advanced science and innovative business models. Tevogen Bio has reported positive safety data from its proof-of-concept clinical trial, and its key intellectual property assets are wholly owned by the company, not subject to any third-party licensing agreements.

Tevogen Bio is driven by a team of highly experienced industry leaders and distinguished scientists with drug development and global product launch experience. Tevogen Bio’s leadership believes that accessible personalized therapeutics are the next frontier of medicine, and that disruptive business models are required to sustain medical innovation.

Forward Looking Statements

This press release contains certain forward-looking statements, including without limitation statements relating to: expectations regarding the healthcare and biopharmaceutical industries; Tevogen’s development of, the potential benefits of, and patient access to its product candidates for the treatment of infectious diseases and cancer; Tevogen’s plans to expand its efforts in artificial intelligence; Tevogen’s ability to develop additional product candidates; Tevogen’s use of funds from the grant; and the potential receipt of additional future grants. Forward-looking statements can sometimes be identified by words such as “may,” “could,” “would,” “expect,” “anticipate,” “possible,” “potential,” “goal,” “opportunity,” “project,” “believe,” “future,” and similar words and expressions or their opposites. These statements are based on management’s expectations, assumptions, estimates, projections and beliefs as of the date of this press release and are subject to a number of factors that involve known and unknown risks, delays, uncertainties and other factors not under the company’s control that may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations expressed or implied by these forward-looking statements.

Factors that could cause actual results, performance, or achievements to differ from those expressed or implied by forward-looking statements include, but are not limited to: that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the effect of the recent business combination with Semper Paratus Acquisition Corporation (the “Business Combination”) on Tevogen’s business relationships, operating results, and business generally; the outcome of any legal proceedings that may be instituted against Tevogen; changes in the markets in which Tevogen competes, including with respect to its competitive landscape, technology evolution, or regulatory changes; changes in domestic and global general economic conditions; the risk that Tevogen may not be able to execute its growth strategies or may experience difficulties in managing its growth and expanding operations; the risk that Tevogen may not be able to develop and maintain effective internal controls; costs related to the Business Combination and the failure to realize anticipated benefits of the Business Combination; the failure to achieve Tevogen’s commercialization and development plans and identify and realize additional opportunities, which may be affected by, among other things, competition, the ability of Tevogen to grow and manage growth economically and hire and retain key employees; the risk that Tevogen may fail to keep pace with rapid technological developments to provide new and innovative products and services or make substantial investments in unsuccessful new products and services; the ability to develop, license or acquire new therapeutics; that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk of regulatory lawsuits or proceedings relating to Tevogen’s business; uncertainties inherent in the execution, cost, and completion of preclinical studies and clinical trials; risks related to regulatory review, approval and commercial development; risks associated with intellectual property protection; Tevogen’s limited operating history; and those factors discussed or incorporated by reference in Tevogen’s Annual Report on Form 10-K and subsequent filings with the SEC.

You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Tevogen undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Contacts

Tevogen Bio Communications
T: 1 877 TEVOGEN, Ext 701
Communications@Tevogen.com

FAQ

What is the total value of the grant funding secured by Tevogen Bio (TVGNW)?

Tevogen Bio secured up to $10 million in non-dilutive grant funding, with an initial $2 million received and potential for additional $8 million subject to review.

How will Tevogen Bio (TVGNW) use the grant funding received in January 2025?

The funding will be used to develop T cell therapeutics for cancer and viral infection treatments, and to expand their artificial intelligence initiative, Tevogen.AI.

What is the relationship between Tevogen Bio (TVGNW) and Microsoft?

Tevogen Bio is working with Microsoft on AI development, with both companies participating in panels at the JPMorgan Healthcare Conference discussing AI applications in biopharma.

How does the January 2025 grant funding impact Tevogen Bio (TVGNW) shareholders?

The grant funding is non-dilutive, meaning it does not reduce existing shareholders' ownership stakes in the company.

What is the total funding secured by Tevogen Bio (TVGNW) in recent months?

Tevogen Bio has secured up to $46 million in total funding, comprising the recent $10 million grant and a $36 million loan agreement from 2Q24.