SUDA Pharmaceuticals (ASX:SUD), a company focussed on oromucosal drug delivery, has announced it has received "firm commitments" for a placement to raise over $2.7 million.
The company said the placement involved up to 76,708,975 ordinary shares issued to existing and new professional and sophisticated investors to raise $2,761,523 before costs.
The company said the placement will provide funding to maintain its current development program for twelve months.
It said the additional funding will also assist management to continue to evaluate new assets that have been identified and are being considered for acquisition.
The company’s areas of focus are oncology and the central nervous system. It said it is looking to secure technologies in the pre-clinical or clinical stages of drug development.
SUDA’s CEO and managing director, Dr Michael Baker, said, “We are pleased with the demand for investment in SUDA from sophisticated and professional investors. We have a portfolio of products under development, and we are evaluating technologies for a potential acquisition to expand our pipeline in the value-adding stages of drug development. This capital raising strengthens our financial position giving us 12 months before the company will need additional capital."
The company also announced that Laboratorios Ordesa S.L. has elected not to proceed with further work or exercise their option to progress from a feasibility study into full development of a consumer product for the paediatric market.
Dr Baker said, “We enjoyed working with Ordesa on this challenging project. We look forward to keeping the discussions open between the two groups to assess if there are other products that may benefit from being converted into an oral spray.”