The drug research group hVIVO (LON:HVO) has raised £20.5mln that will be used to fund work on a ground-breaking cold and flu treatment.
Stock was issued at 254.5p, a modest 12% discount to last night’s close, suggesting there is a good deal of interest in hVIVO story.
Put very simply the company’s scientists develop human models of disease that help drug companies and research groups find better treatments. In fact the process helps streamline and accelerate the discovery process.
The cash will be used to bankroll hVIVO's chunk of the costs of a phase IIb clinical trial PrEP-001, a nasal spray that may help stave off the worst effects of colds and flu.
Given there is no cure to the common cold, this treatment could be huge.
hVIVO’s involvement comes via its £14mln investment in the fledgling PrEP Biopharm, which also counts US Johnson & Johnson as a cornerstone backer.
Chief executive Kym Denny said: “We are delighted at the response and immense support we have received from our shareholders to raise these funds.
“This has been a remarkable year, one where the growing recognition regarding the value of the hVIVO platform culminated in our PrEP Biopharm announcement and we gained access to an innovative Phase IIa compound, PrEP-001.
“It heralds a transformational time for our organisation as we build upon our achievements in asthma and flu."