Faron Pharmaceuticals Limited (AIM:FARN) plans to raise about €40 million through a pre-emptive rights issue to fund the next stage of development of its lead asset, bexmarilimab.
The Finnish company said proceeds would finance the phase II portion of a phase II/III trial agreed with the US Food and Drug Administration, testing bexmarilimab in combination with azacitidine against placebo plus azacitidine in frontline high-risk myelodysplastic syndrome, as well as several investigator-initiated combination trials across multiple cancers.
The board has convened an extraordinary general meeting on 2 March 2026 to seek shareholder authorisation for the offering, with the subscription period expected to take place in the first quarter, subject to market conditions.
Chair Tuomo Pätsi said: “The Board has carefully considered a range of financing alternatives, including non-dilutive funding, debt instruments and equity-linked structures to fund the development of bexmarilimab.”
He added: “We have concluded that equity financing by way of a rights offering is the most appropriate and prudent course of action at this time for the Company and its shareholders.”
Chief executive Juho Jalkanen said: “We have now reached an important milestone with bexmarilimab, achieving deep and durable responses as well as a favourable safety profile in HR MDS.”