OncoSil Medical Ltd (ASX:OSL) has received strong shareholder support for its share purchase plan, with applications materially exceeding the aggregate capped amount of $4 million at 12 cents per share.
This amount is in addition to the A$12.7 million raised through the recent share placement to institutional and sophisticated investors at the same issue price.
Commercialisation of OncoSil™ for pancreatic cancer treatment
Funds raised from the institutional placement and share purchase plan are expected to see the company through to the commercialisation of its OncoSil device in the European Union.
OncoSil is a targeted radioactive isotope implanted directly into a patient’s pancreatic tumours via an endoscopic ultrasound.
Treatment with the OncoSil is intended to deliver more concentrated and localised beta radiation compared to external beam radiation.
READ: OncoSil Medical seen as undervalued by broker following success with pancreatic cancer treatment trials
Analysts at Bell Potter considers OncoSil substantially undervalued and has a buy recommendation with a 12-month price target of 39 cents (current price: 14 cents).
John Hester from Bell Potter highlighted the fact that the company has just received further encouraging news regarding the progress of its global pancreatic clinical study program.
He noted that 40 patients have now been recruited with 31 successful implants completed to date.
$44.8 million revenue forecasted for fiscal 2019
Hester is forecasting revenues to increase from $3.5 million in fiscal 2018 to $44.8 million in fiscal 2019.
His projections point to a net profit of $27 million in 2019, representing underlying earnings per share of 4.4 cents.