Tevogen Bio Secures $10 Million Non-Dilutive Grant: A Boon for AI-Driven Immunotherapy

Tevogen Bio Holdings Inc. (Nasdaq: TVGN), a clinical-stage specialty immunotherapy biotech pioneer, has secured a significant non-dilutive grant of up to $10 million from KRHP LLC. This funding, announced on January 28, 2025, is set to support Tevogen's mission to develop T cell therapeutics for the treatment of infectious diseases, cancers, and neurological disorders, while also expanding its artificial intelligence (AI) initiatives.

The grant, which includes an initial contribution of $2 million with an additional $8 million potentially available, is a strategic win for Tevogen Bio. The non-dilutive nature of the funding allows the company to inject capital without issuing new shares or diluting existing shareholders. This is particularly important in the current biotech funding environment, where preserving shareholder value is paramount.

Tevogen Bio's CEO, Dr. Ryan Saadi, expressed his excitement about the agreement, stating, "We are grateful to receive grant funding from KRHP LLC and plan to deploy the funds in part to further expand efforts in AI. We are working with Microsoft 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.'"

The funding will support Tevogen's development pipeline and AI initiatives, including:

1. TVGN 489: Tevogen's initial product from its ExacTcell™ technology platform, which is expected to be a key focus of the company's research and development efforts.
2. Artificial Intelligence (AI) Initiatives: Tevogen Bio is expanding its AI efforts, including Tevogen.AI, with the aim of revolutionizing drug discovery, accelerating development timelines, enhancing patient accessibility, fostering quicker innovation, and significantly reducing operating costs. The company is collaborating with Microsoft to leverage AI in biopharma, as evidenced by their participation in the JPMorgan Healthcare Conference panels.
3. Intellectual Property (IP) Portfolio: The allocated funds will also be used to strengthen Tevogen's IP portfolio, which currently includes 3 granted US patents, 9 pending US patent applications, and 12 ex-US patent applications. Two of these patents are related to artificial intelligence, highlighting the company's commitment to innovation in this area.



The conditional nature of the remaining $8 million grant creates a performance-based incentive structure for Tevogen Bio, encouraging the company to focus on specific milestones and achievements to unlock additional funding. To evaluate progress and unlock the additional $8 million, Tevogen Bio will likely focus on the following performance metrics:

1. AI development milestones: As the grant is intended to further Tevogen's AI efforts, the company will need to demonstrate progress in developing and integrating AI-driven technologies into its drug discovery and development processes.
2. Clinical trial progress: Tevogen may need to show advancements in its clinical trials, such as enrolling a certain number of patients, achieving specific safety or efficacy endpoints, or successfully completing trial phases.
3. Partnership and collaboration success: Tevogen's partnership with Microsoft and other collaborations play a crucial role in its strategic planning. To unlock the additional funding, Tevogen may need to showcase the success of these partnerships, such as achieving specific AI integration milestones, publishing joint research, or securing additional funding through these collaborations.
4. Financial performance: While the grant is non-dilutive, Tevogen's financial health and operational efficiency will still be crucial for unlocking the additional funding. The company may need to demonstrate financial stability, cash flow management, or revenue growth to reassure KRHP LLC of its ability to execute on its strategic plan.

By securing this non-dilutive grant, Tevogen Bio is well-positioned to drive future growth and innovation in the biotech industry. The company's commitment to AI-driven drug discovery and development, combined with its strong IP portfolio and strategic partnerships, sets the stage for long-term success in delivering transformative and affordable therapies to patients.