ImmuPharma PLC (LON:IMM) said it has raised a total of £4.1mln from investors after an oversubscribed placing, with the new cash infusion to be used to strengthen its balance sheet as negotiations take place with potential commercial partners for its flagship drug, Lupuzor.
The life sciences group said the accelerated book-build offering saw around 7.884 mln new shares issued at 52p each, a modest discount to last night’s closing price, with the placing raising more than the around £3mln initially targeted.
In late afternoon trading, Immupharma shares were 1.5%, or 0.875p lower at 56.5p.
WATCH: Immupharma chairman 'delighted' ...
Tim McCarthy, Immupharma’s chairman, said: "We are delighted with the support we have had on this fund raise from both existing and new investors.”
He added: “The primary motivation for this successful fund raise is to further strengthen our balance sheet and enhance our position in ongoing and future negotiations with potential partners for Lupuzor.
“Additionally it also allows us to further invest in our earlier stage pipeline and the P140 platform. We look forward to providing our shareholders with further updates regarding our Lupuzor Phase III trial, as it progresses throughout 2017."
These are exciting times for ImmuPharma, one of a small handful of AIM drug development companies with a treatment in phase III clinical trials.
In its last update, on January 25, the company said 293 patients had been screened to take part in the efficacy study of the treatment for lupus, a life threatening auto-immune disease, and 200 were accepted.
Although the recruitment process only closed December for the year-long assessment two people have already completed the course.
In all, trials of the potentially breakthrough medication are being held at 28 sites in seven countries and over 80% of patients have been receiving the drug for at least three months.
As well as the two that have come completed the study, a further 24 patients had at the last update taken part for nine months and 50 for six months.
Systemic Lupus Erythematosus (SLE) is a debilitating and painful disease, which sees the body's immune system turn against itself for reasons still not fully understood.
It can affect various organs in various people in various ways so many symptoms can ensue, which calls for treatment from heart, liver and skin specialists.
It is much more common in women, appears most often in African-Americans, Asians and Hispanics and it is estimated that up to five million individuals worldwide may be affected.
ImmuPharma does not claim Lupuzor is a cure but hopes it will offer significant relief to sufferers such that their quality of life is greatly improved.
It also thought to be more effective than other products available, such as Glaxo's Benlysta.
-- Adds final figure from closing of placing; chairman's comment --