Veterinary biotechnology company TheraVet (Euronext Growth Paris/Brussels:ALVET) on Monday announced a strategic transformation project with French pharmaceutical company H4 Orphan Pharma (H4Orphan) aimed at creating a leader in idiopathic pulmonary fibrosis.

The operation involves replacing TheraVet's veterinary activities with a high-potential biotech programme focused on the repositioning of an innovative molecule for the treatment of this rare disease in humans.

The strategic agreement between TheraVet and H4Orphan involves H4Orphan contributing its flagship clinical programme in idiopathic pulmonary fibrosis to TheraVet in exchange for new shares. This aims to accelerate the development of an innovative treatment for pulmonary fibrosis, including launching a Phase II study and leveraging the complementary expertise and resources of both companies.

To support the plan, TheraVet has secured an initial refinancing of EUR300,000, providing financial visibility through to the end of the first quarter of 2025. This comes from an equity-linked financing facility set up by the company in November 2023.

TheraVet intends to divest its veterinary activities, including the BIOCERA-VET product line and VISCO-VET clinical programme.