Motif Bio PLC (LON:MTFB) (NASDAQ:MTFB) has confirmed that it needs to raise additional capital in the near term and said it is in the advanced stages of concluding a proposed placing of new ordinary shares to institutional and other investors.
The AIM-listed clinical-stage biopharmaceutical company, specialising in developing novel antibiotics, said the net proceeds of the proposed placing, when taken together with its existing cash resources are expected to be sufficient to fund the business beyond its meeting with the US Food & Drug Administration (FDA) scheduled for 3 May 2019.
READ: Motif Bio surges as US FDA agrees to a meeting to discuss new drug application for novel antibiotic iclaprim
At that meeting, Motif Bio will discuss the Complete Response Letter received in respect of the company's New Drug Application (NDA) for its lead novel antibiotic, iclaprim, which said additional data was needed.
The company said it expects to be able to provide guidance as to a route to approval for iclaprim upon receipt of the minutes from this meeting, which would typically be approximately 30 days from the meeting date.
The group added that assuming a viable route to approval, it is expected that further additional funds will be required to resubmit an NDA and reach a new approval date.
Motif Bio concluded: “Whilst there can be no certainty that the Proposed Placing will proceed, nor as to the quantum, pricing, or timing of any such placing the Board is seeking to conclude the process shortly and will update shareholders accordingly.”
In mid-morning trading, Motif Bio shares were 4.6% lower at 7.50p.