Neuren Pharmaceuticals (ASX:NEU) has raised $20 million through a placement of new shares to institutional and sophisticated investors at $2.05 per share.
The company said the placement was strongly supported by institutions in Australia and overseas, with applications from new investors and existing shareholders far exceeding $20 million.
It said it also intends to offer a share purchase plan at the same share price as the Placement, capped at A$2 million, to existing eligible shareholders in Australia and New Zealand.
Neuren said the funds will be used to accelerate the development of NNZ-2591 for four neurodevelopmental disorders - Prader-Willi, Phelan-McDermid, Angelman and Pitt Hopkins syndromes.
NNZ-2591 now has Orphan Drug designation from the US FDA for all four disorders.
Neuren non-executive chair Patrick Davies said, “We are highly encouraged to have received such strong support from existing and new investors for the Placement, which enables Neuren to accelerate the delivery of substantial value for all shareholders. We are now in a very strong position to capitalise fully on the transforming events expected in the coming months.”
Neuren CEO Jon Pilcher added, “This additional funding enables Neuren to accelerate and optimise the crystallisation of value for NNZ-2591. We are excited as we approach the Phase 3 results for trofinetide in Rett syndrome before the end of the year, but equally excited about the prospects for NNZ-2591 in each of Prader-Willi, Phelan-McDermid, Angelman and Pitt Hopkins syndromes for which we estimate the total number of patients is five times Rett syndrome. To date in 2021 we have achieved all our targeted milestones and we now have an even stronger series of future catalysts to maintain the momentum.”