Poolbeg Pharma PLC (AIM:POLB) has unveiled plans to raise around £4.1 million through a share placing and subscriptions, with the funds earmarked for clinical trials of its experimental treatments in cancer immunotherapy and obesity.
The new investment will support the next stage of development for two of the company’s lead candidates: a drug designed to prevent a serious side effect of cancer treatment, and a new oral formulation targeting the weight-loss market.
The company said the proceeds, together with existing cash reserves, would extend its financial runway into 2027.
The placing is being conducted via an accelerated bookbuild led by Shore Capital and is expected to raise no less than £2.655 million.
A further £1.345 million will be raised through direct subscriptions, with up to £100,000 offered to retail investors through the BookBuild platform. Shares are being offered at 2.5p, a 12% discount to Monday’s closing price.
The company said the proceeds would help it reach key milestones, including dosing the first patient in a phase IIa trial of POLB 001 in the second half of this year.
POLB 001 is a tablet-based treatment intended to prevent cytokine release syndrome, a potentially life-threatening immune reaction, in patients receiving certain cancer immunotherapies.
The candidate “represents a significant market opportunity expected to exceed US$10 billion”, Poolbeg said, citing independent research commissioned by the company.
It added that it had received strong interest from major pharmaceutical companies, including an offer to provide the antibody used in the trial at no cost.
Funds will also go towards a proof-of-concept trial for Poolbeg’s oral GLP-1 programme, which it said would begin in the coming months.
GLP-1 drugs mimic a gut hormone that regulates blood sugar and appetite, and have gained attention for their role in treating obesity.
Poolbeg’s programme uses proprietary encapsulation technology to improve the oral delivery of these peptide-based treatments, which are typically injected.
The company believes positive results could open the door to partnerships and commercial deals in what has become one of the most competitive and lucrative areas in drug development.
In a separate announcement, Poolbeg posted its results for 2024. The drug developer reported a cash balance of £7.8 million as of 31 December, which it said reflected disciplined capital allocation.
Its artificial intelligence-led drug discovery programmes have continued to identify new potential targets and compounds, and the company said discussions with prospective partners are ongoing.
During the year, Cathal Friel was appointed executive chair. Friel, a co-founder of Poolbeg, has held senior roles at other biopharma companies from the same stable, including hVIVO and Amryt Pharma.
The loss for the period was £5.8 million, reflecting its focus on developing and expanding its pipeline.