Clinical stage biopharmaceutical company Pharmaxis (ASX:PXS) has announced it has received commitments from sophisticated and institutional investors to subscribe for approximately 68.2 million fully paid ordinary shares at $0.105 per share to raise approximately $7.2 million.
The company said a share purchase plan (SPP) will provide shareholders with the ability to purchase up to $30,000 of Pharmaxis ordinary fully paid shares (285,714 shares) at the same $0.105 price as the placement. The Company is seeking to raise $2.0 million under the SPP.
Pharmaxis said the funds raised will be used to strengthen its balance sheet as it conducts two clinical studies of its lead drug PXS-5505 in cancer - a phase 2a study in myelofibrosis is already recruiting and a phase 1c/2a investigator-led study in liver cancer (Hepatocellular Carcinoma or HCC) being conducted with the University of Rochester and expected to commence in the first half of 2022. A study of Pharmaxis topical drug PXS-6302 in patients with wound and burns scarring is expected to commence dosing in patients later this quarter.
"The oversubscribed Placement received strong support from existing substantial shareholders - BVF Partners LP, Karst Peak Capital Limited and D&A Income Ltd, together with a number of new institutional and sophisticated investors," said the company.
CEO Gary Phillips said, “Pharmaxis is entering a transformational 12 months with two clinical studies expected to deliver safety and efficacy data in diseases with high unmet need and addressable markets of over $1b by the end of 2022. The opportunity to add a third study in liver cancer triggered the capital raise and we are delighted by the response both from our existing shareholders and other knowledgeable investors. I would also like to welcome our new institutional investors and acknowledge the strong support we have seen from the Morgans network.”