Dimerix shares surge after company secures ‘transformational’ $20m funding round from major investors
Health & Biotech
Health & Biotech
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The funding round marks a vote of confidence from institutional and sophisticated investors for DXB’s multi-channel clinical development pathway.
Biopharmaceutical company Dimerix (ASX:DXB) is fully funded to pursue the next stage of its clinical development pathway, after securing a marquee $20m funding round this morning.
The funds raised will be allocated towards the initiation of pivotal Phase 3 trials, for the application of the Dimerix’s proprietary DMX-200 formula in the treatment of FSGS kidney disease.
It follows a key development last month, when Dimerix received confirmation from US Food & Drug Administration (FDA) that its Phase 3 study design (with interim analysis) is appropriate to support the potential for accelerated approval in the US market.
The offer price for the placement is 20c per share, a discount of around 15% to DXB’s last closing price.
And following the announcement this morning, DXB shares ripped higher to almost 40c at the opening bell – a gain of almost 60%.
The funding round will be carried out as a two-tranche placement to new and existing sophisticated investors.
Tranche 1 will see Merchant Fund Management – the investment group led by Andrew Chapman – join the DXB register with a $6m investment.
Also corner-stoning the raise was Peter Meurs, Dimerix’s major shareholder, who committed an additional $3.5 million.
Tranche 1 will be executed immediately under ASX Listing Rule 7.1 and 7.1A, while the company will seek approval for the following $10.5m at its upcoming annual general meeting in September.
In addition, Dimerix will initiate a share purchase plan (SPP) giving eligible shareholders the right to subscribe to up to $30,000 worth of DXB shares at the 20c placement price, to the value of an additional $2m.
Commenting on the announcement, Dimerix CEO Nina Webster said the funds raised will give the company the requisite balance sheet strength to pursue its multi-channel clinical development program.
“This is transformational for the company, with a funding pathway through to potential marketing approval endpoint,” Webster told Stockhead.
FSGS (Focal Segmental Glomerulosclerosis) is a rare kidney disease that affects around 210,000 people globally each year.
It currently has no known remedy, giving potential treatment solutions a runway to seek accelerated approval in the event of successful clinical trials.
Along with the initiation of its Phase 3 trial, Dimerix will use the funds raised to build out its capabilities in manufacturing distribution and logistics to obtain the required clinical trial material (DMX 200).
The company will also pay down debt and allocate resources to the next round of preparations and appropriate regulatory applications to advance the clinical study.
Along with its FSGS study, the company’s DMX-200 treatment is also being assessed in two global Phase 3 trials for combination COVID-19 therapies. Importantly if DMX-200 is effective in those COVID-19 respiratory complications, it would likely be equally effective against any strain of COVID as well as other pneumonias.
The current development pathway is evidence of DXB’s ability to develop “multiple assets in commercially attractive and growing markets”, the company said.
In that context, the marquee funding round is a vote of confidence from sophisticated investors towards Dimerix’s business strategy, said non-executive chairman Dr James Williams.
“The interest in this raise reflects the quality of the Dimerix assets, including the exciting potential from its three Phase 3 clinical programs,” Williams said.
“We welcome the Merchant Group as a major shareholder, and appreciate the strong participation from other new and existing shareholders.”
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.