Sydney biotech Nyrada (ASX:NYR) is fully funded to conduct Phase 1 trial of its potentially cholestrol-lowering and neuroprotective drug candidates after receiving firm commitments for a $11 million capital raising.
Chief executive James Bonnar told Stockhead the company had only planned to raise $10 million, but received strong demand.
“We’re really pleased with the level of support,” he said.
All company directors and management agreed to subscribe to the share placement, for a total of $400,000, subject to shareholder approval.
The shares will be issued at 26c each, a 15.6 per cent discount to their recent five-day volume-weighted price.
The company is looking to begin human trials late this year of its powerful cholesterol-lowering pill NYX-PCSK9i. Nyrada hopes the small molecule drug could largely supplant the two PCSK9 inhibitors on the market, which require subcutaneous injections.
Nyrada also expects to begin a phase 1 study in mid-2022 of a compound with neuroprotective potential. Nyrada is investigating the drug with the Walter Reed Army Institue of Research and UNSW Sydney.
Readouts from both studies are due in 2022, Bonnar said.
At 3.05pm, Nyrada shares were down 3.2 per cent to 30.5c.