Medesis shares leap 75% on funding request for drugs against nuclear threat (updated)

Medesis Pharma SA

05/04/2022 11:35

(Updates trading, adds comment)
    April 5 (Reuters) - French biotech company Medesis Pharma
 ALMDP.PA  has requested defence funding to speed up the
development of three drugs to treat nuclear contamination, it
said on Tuesday, sending its shares up by as much as 75% in
early trading.
    The surge in Medesis shares, which were up 53% at 1050 GMT, 
triggered multiple trading halts from Euronext.
    Medesis said it had requested funding from France's Defence
Innovation Agency for three drugs "specifically intended for the
treatment of large populations contaminated or irradiated after
a civil or military nuclear accident". The request comes as
Russia's invasion of Ukraine has spurred widespread concerns
over a possible nuclear attack. 
    Medesis did not say how much funding would be required, but
gave itself 12- to 18-month deadlines for product registration
and manufacturing, subject to demands from public authorities.
    "To date, there is no suitable treatment for a serious
nuclear accident," it said in a statement.
    The company said its products were relevant to the war in
Ukraine as well as to European plans to boost nuclear generation
as countries seek to reduce reliance on Russian energy and
secure carbon-free electricity.
    A nuclear explosion would generate a fireball and
destructive shock blast, burns from light and heat radiation,
and radioactive pollution that can be carried by winds across
great distances and cause long-term cancers, it said.
    
    EXTREME SITUATION
    "The world has realised, with the tragic events in Ukraine
and notably the bombing near a power station, that the nuclear
threat is still very much alive," said Invest Securities' deputy
managing director Pascal Hadjedj.
    After health providers worldwide were left with inadequate
resources to face the coronavirus pandemic, the brokerage said
it was key to prepare stocks to avoid an "extreme situation".
    Rx Securities' managing director Samir Devani added that
Medesis' treatments could be developed rapidly and result in
stockpile orders.
    Sources told Reuters last week the European Union had agreed
to stockpile equipment and medicine to protect against nuclear
incidents.  urn:newsml:reuters.com:*:nL5N2VY6CR
    Medesis' drug programmes seek to treat plutonium and caesium
contamination, and prevent and treat respiratory and digestive
inflammation caused by radiation.
    They include a synthesised version of Prussian Blue which
could be taken orally and stored at room temperature, and
caesium medication that would be suitable for children. 
    French President Emmanuel Macron, who is running for
re-election this month, has announced plans for six new nuclear
reactors and studies for a further eight.  urn:newsml:reuters.com:*:nL5N2VK549   

 (Reporting by Sarah Morland; editing by Barbara Lewis and
Bernadette Baum)
 ((sarah.morland@thomsonreuters.com; +48 58 769 65 92;))