Shares in Synairgen (LON:SNG) are worth 108p each, or more than double their current value, broker finnCap said after the drugs developer revealed it raised £5.3mln via a placing of stock at 50p.
The cash will be used to take its latest wave of drug candidates to the ‘clinic-ready’ status.
Followers of the group will know it recently inked a deal with drugs giant AstraZeneca (LON:AZN) worth up to US$225mln in milestone payments to take control of the development of the potentially breakthrough asthma treatment SNG001, including US$7.25mln upfront.
“The net proceeds from the upfront payment from AstraZeneca together with existing cash resources cover the costs of running the company out to mid-2016,” said finnCap’s Keith Redpath.
“However, this would mean that Synairgen would not be exploiting the capabilities and expertise that it has developed through the development and licensing of SNG001.”