The capital structure for DXB’s marquee capital raise was signed off by shareholders at its AGM last month.

ASX biotech Dimerix (ASX:DXB) closed out a big month on equity capital markets with an oversubscribed share purchase plan (SPP) last week.

The company targeted $2m but demand was excess multiples above that figure. In response, the board approved an expanded raise of $4m, which will be scaled back in line with the SPP terms and conditions.

Speaking with Stockhead following the announcement, Dimerix CEO Nina Webster said the  $4m SPP gives Dimerix more flexible funding options across its multi-channel drug development suite.

The SPP combines with DXB’s marquee $20m share placement in September, which included cornerstone backing from a network of major investors.

And crucially for a biotech, the funding gives Dimerix “a pathway to market”, Webster said, as it initiates extensive Phase 3 clinical trials for the use of its DMX-200 drug in the treatment of FSGS (Focal Segmental Glomerulosclerosis) kidney disease.


Capital strength

“If you ask how many companies are fully funded for a Phase 3 program, you’re not going to come up with many,” Webster said.

“So that’s where I think this investor backing really sets us apart and allows us to execute on a global trial and the resources you need for that.”

In the wake of the $20m share placement, Dimerix held its AGM (annual general meeting) last month where shareholders signed off on the options conversion component of the deal.

That structure is important, because if DXB achieves successful data results from the interim stage of the trial, the conversion of those options from key backers will then fund the next stage of the trial process.

“With positive interim results, those options will vest and fund us to the next data point — which could be the marketing point,” Webster explained.

“So the key thing is we now have a potential pathway to market with this funding.”


Next steps

As the trial process gets underway, Dimerix recently filed its first ethics submission in Australia, with plans to initiate applications globally for each of its core jurisdictions on a rolling basis.

The company has already received key feedback from US and European regulators which supports the pathway for accelerated approval of the DMX-200 treatment, in the event of successful trial results.

“Ethics approval is a fairly extensive process, and typically takes 6-8 weeks to complete,” Webster said.

“So Australia went first, and we’ll then roll out the program country-by-country.”

The specifics of that roll-out will be informed partly by the COVID-19 status of each country, and partly by the nature of each jurisdiction’s regulatory process.

“Some are fairly quick and others are more lengthy. So we’re now in the process of submitting each ethics submission on a rolling basis,” Webster said.

And with the extra capital from its SPP, Dimerix also has the balance sheet strength to advance additional treatments in its product pipeline such as its DMX-700 treatment for Chronic Obstructive Pulmonary Disease, which is the third leading cause of death worldwide.

And along with its participation in global trials for advanced COVID-19 treatments, Dimerix is now a fully funded biotech with three separate (and concurrent) drug development opportunities.

“What it demonstrates is that we really do have strong support for the company,” Webster said.

And as global clinical trials commence for its unique FSGS treatment, those same DXB investors are ready for an exciting 18 months ahead as Dimerix looks to execute on a company-making, global market opportunity.

This article was developed in collaboration with Dimerix, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.