Faron Pharmaceuticals Oy (LON:FARN) has topped up its balance sheet with a £15mln funding to accelerate the development of its two lead products.
A placing and subscription at 805p, the closing price yesterday, will bring in a net £14.1mln to add to an existing cash balance of €9.3mln. In late afternoon trading, Faron Pharma shares were 4.4% at 840p.
WATCH: Faron Pharmaceuticals raises £15mln to establish network for Traumakine launch
Markku Jalkanen, chief executive, said the funds would allow it to prepare the way to market for Traumakine, its treatment for Acute Respiratory Distress Syndrome (ARDS).
Results from a phase III trial (INTEREST) are expected early in the spring, but Jalkanen said it wants to lay the groundwork for a product launch.
In particular, Faron wants to build a US sales and marketing base in Boston and create a logistics network that will include an early access programme.
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A direct sales model in the US and EU would give an alternative route to market to retain more profits in addition to out-licensing, Faron said.
The money will also enable Faron to expand the scope of the upcoming phase I/IIb trial of immunotherapy cancer treatment Clevegen.
“We plan to initiate the Clevegen Phase I/II MATINS clinical trial program in several solid tumours and this funding will allow us to expedite the planned expansion of Clevegen's clinical program to achieve Phase IIb data,” said Jalkanen.
2018 will be a pivotal year for the company, he added.
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