Shares in Thalia Therapeutics plc (AIM:THAT) rose 20% to 0.69p after the company unveiled an acquisition that moves it into clinical-stage cancer drug development, alongside an oversubscribed fundraise.
The AIM-listed biotechnology company is buying Sanmirna Therapeutics, a US business holding an exclusive licence to miRisten, an RNA therapy for acute myeloid leukaemia.
The deal carries an initial consideration of £3.675 million, with deferred milestone payments worth up to a further £13 million.
Thalia said the acquisition would transform it from a drug delivery and preclinical business into a clinical-stage RNA therapeutics company.
Acute myeloid leukaemia is a rare and aggressive blood cancer affecting more than 22,000 new patients a year in the United States.
The company put the global market opportunity at $3.9 billion, projected to grow to $9.8 billion by 2035.
miRisten works by selectively inhibiting microRNA-126, which is believed to play a critical role in driving the disease.
The candidate was first discovered at City of Hope, a leading US cancer research centre, which has licensed the rights to Sanmirna.
An ongoing Phase 1 trial is testing the drug's safety and early signs of efficacy in patients with relapsed or refractory disease, with top-line results due in the first half of 2027.
Alongside the acquisition, Thalia raised £2.75 million through a placing and subscription of new shares at 0.6p each, a premium to the previous close.
Directors subscribed for £1.1175 million of the fundraise, representing 40% of the total, with support also coming from investors, including Premier Miton.
The company said the proceeds would fund its work programme through to mid-2027, including completion of the miRisten Phase 1 trial.
Chief executive Dr David Solomon said the acquisition advanced Thalia's development timeline by several years and gave the company three material assets at differing clinical stages.
