Sydney-based Pharmaxis (ASX:PXS) has completed a $24 million capital raise from sophisticated and institutional investors to fund the further development of its LOXL2 program.
News of the successful raise is the latest positive news for the company.
It has received milestone payments from Boehringer Ingelheim for progress in the development of BI 1467335 for the treatment of non-alcoholic steatohepatitis (NASH).
The company has also progressed the development of its own Lysyl Oxidase 2 Inhibitors (LOXL2) program in the NASH market and said it will use the funds raised to strengthen its balance sheet as it conducts partnering negotiations.
It will also use the funds to invest in pre‐clinical programs, general working capital and costs of the capital raise.
The $24 million raise was priced at a $0.325 per share.
As part of the raise, UK-based life sciences company Arix Bioscience has committed to invest $14.2 million in Pharmaxis and will emerge with an 11.1 percent shareholding. Pharmaxis said its Board has also approved the nomination of Arix's Edward Rayner to join its Board.
Existing shareholder BVF Partners LP has also committed to invest a further $7.1m to increase its shareholding in Pharmaxis to 22.9 percent.
According to Pharmaxis CEO Gary Phillips, “We are delighted with the strong support for the capital raising from Arix and BVF as we head into LOXL2 partnering negotiations. This will put the Company in a strong position to negotiate the best partnering outcome and continue investing in its preclinical pipeline.
"Pharmaxis will also be strengthened by the global reach of Arix and the addition to the Board, subject to shareholder approval, of Ed Rayner ‐ Ed has 18 years of experience as an equity analyst and Portfolio Manager in Europe and Australia.”
“We are very pleased to have led Pharmaxis’ successful financing, as they continue to build their position as a world leader in developing Page 2 of 2 mechanism‐based inhibitors of amine oxidases for patients suffering from fibrotic and inflammatory diseases," said Joe Anderson, CEO of Arix Bioscience.
"We look forward to supporting Pharmaxis’s ambitious and internationally‐experienced management team in developing these potentially first‐in‐class treatments for patients.”