PAA is well funded after a recent capital raise to advance lead drug monepantel. Pic: Getty Images
Health & Biotech
Special Report: Clinical-stage biotech PharmAust has completed its share purchase plan, raising $7.8m and far exceeding the initial target of $2m, further bolstering its balance sheet after a recent $10m placement to institutional and sophisticated investors.
PharmAust (ASX:PAA) says demand for its SPP, which closed on July 19, was “significantly in excess of the initial target of $2m” with the board accepting all valid applications, strengthening the company’s balance sheet and reducing future funding needs.
PAA says ~41m new shares in the company at a price of 19c will be issued to SPP participants on July 25, with trading expected to start on the ASX on July 26.
This SPP complements the recent $10m placement at the same issue price of 19c to institutional and sophisticated investors, bringing the combined total to ~$17.8m.
PAA announced earlier this month it had achieved a major milestone after its lead investigational drug, monepantel (MPL), was selected for inclusion in the prestigious HEALEY ALS Platform Trial in the US under a Clinical Research Support Agreement with Massachusetts General Hospital.
The trial signifies a crucial progression for PAA in its efforts to gain approval from the US FDA for MPL as a treatment for amyotrophic lateral sclerosis (ALS), also called motor neurone disease or MND.
New and updated data released in June on PAA’s open-label extension study provided by Berry Consultants revealed patients who took MPL had a 91% lower risk of death from MND/ALS compared to ‘untreated matched-controls’.
PAA says the data is significant and suggests that MPL could be an effective treatment for the devastating neurological disease.
The company says being selected for inclusion in the HEALEY ALS Platform Trial means MPL’s efficacy and potential therapeutic benefits can now be independently recognised and validated within the ALS research community.
PAA says funds raised from the SPP will support PAA’s HEALEY ALS Platform Trial, GMP manufacturing, preclinical models for other neurodegenerative diseases, regulatory filings, working capital and offer costs.
Chairman Sergio Duchini says the strong support for the SPP and recent placement validate the company’s strategic direction.
“This endorsement from our shareholders strengthens our commitment to our refreshed strategic direction to advance the development of monepantel for ALS and other neurodegenerative conditions,” he said.
Duchini said the strong support for the SPP and placement along with selection for the HEALEY ALS Platform Trial marks a significant validation step PAA’s efforts to accelerate the development of MPL as a viable treatment for ALS.
“PharmAust is well-positioned to finalise preparations towards commencing a pivotal registration study for monepantel for the treatment of amyotrophic lateral sclerosis,” he said.
“With many important milestones on the horizon, including the commencement of the HEALEY ALS Platform Trial in H2 CY2024, we look forward to keeping shareholders up to date on our progress.
“PharmAust would like to thank all our shareholders for their continued support.”
This article was developed in collaboration with PharmAust, 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.
Health & Biotech
Health & Biotech
Health & Biotech
