Ananda Developments Plc (AQSE:ANA) has raised approximately £2.15 million through a successful share placing and subscription, providing crucial support for the clinical and preclinical development of its core treatment.
A specialist in CBD-based therapies for inflammatory pain conditions, Ananda will use the funds to manufacture MRX1, the drug being used in its two Phase II clinical trials targeting chemotherapy-induced neuropathy and endometriosis.
The investment will also enable a pharmacokinetic study for MRX1 in Australia, where generous tax incentives for R&D work will benefit the company. Additionally, the funds will support preclinical research in heart fibrosis and general operational expenses.
"We now have a strong cash runway which gives us the ability to kick on and execute our strategy," said finance director Jeremy Sturgess-Smith in an interview with Proactive.
Charles Morgan, the company’s chairman and a seasoned venture capitalist, invested over £2 million in this round, signaling his confidence in Ananda's innovative pain management solutions.
"We are incredibly lucky to have Charlie cornerstoning this round and supporting us," Sturgess-Smith added.
Ananda plans to offer more shares to existing shareholders via the Winterflood platform. Both Morgan and CEO Melissa Sturgess have also agreed to convert their unsecured debt into company shares, subject to shareholder approval at the upcoming general meeting, bolstering Ananda’s financial health.
Key management personnel have been granted new options as a reward for the company’s progress. "It is the first real opportunity we have had to reward the senior team," said Sturgess-Smith.
Over the next six months, Ananda will focus on clinical trial preparations, while also exploring fast-track approval pathways for MRX1, including the UK’s Early Access to Medicines Scheme (EAMS). "This gives us better access to the MHRA," Sturgess-Smith noted.
In all, 92 patients will be recruited to the CIPN evaluation to assess MRX1’s potential impact on a common side effect of chemotherapy, which causes nerve damage.
Headed by Professor Marie Fallon, the double-blind, placebo-controlled study will take place at Western General Hospital, Edinburgh.
Also kicking off later this year is the endometriosis phase II, headed by Dr Lucy Whitaker, lecturer in obstetrics and gynaecology at the University of Edinburgh, which will aim to recruit 100 patients across to hospitals in Scotland.
Between them, the two potential indications are targeting an addressable market of around $2 billion and growing.
Interestingly, it takes Ananda into an arena called ‘chronic pain’, where the costs are huge and where doctors are looking to prescribe treatments that don’t contain highly addictive opioids.
In the US alone there are estimated to be 50 million chronic pain sufferers, while globally the market is forecast to be worth $118 billion by 2027.
"We look forward to updating the market on our progress," said Sturgess-Smith.