Shares in the drug developer Allergy Therapeutics (LON:AGY) were higher in morning trade after investors gave the green light to a £20mln share placing that will fund the development of its grass allergy vaccine.
The vote in favour of the fund-raise at today’s general meeting allows the company to issue new stock to investors at 22.1p a share.
It is also an important milestone in the life of lead product Pollinex Quatro Grass, an allergy vaccine tapping into a market estimated to be worth US$2bn a year.
Its clinical development was put on hold by the US Food & Drug Administration in 2007 after a patient taking part in a clinical trial reported numbness and weakness. It took five years to lift the embargo.
Allergy Therapeutics has already carried out clinical studies, including a phase III trial and the FDA has confirmed the data gleaned from them remains valid.
The cash call will fund a number of other investigations, including a further phase III trial efficacy trial.
Successfully negotiating these hurdles would pave the way for the launch of Pollinex Quatro Grass in 2019.
At midday, the stock was up 3% at 19.8p, valuing the business at £80mln.