Faron Pharmaceuticals Oy (LON:FARN) shares rose on Tuesday as some positive progress from a cancer treatment trial was released as the firm raised up to €3.12mln (£2.67mln) before expenses via a placing and share subscription to advance its development programmes and provide working capital into the third-quarter of 2019.
The AIM-listed clinical-stage biopharmaceutical company said 864,164 shares were placed at a price of 60.0p each with institutional investors after an accelerated bookbuild process conducted by broker Panmure Gordon. In late afternoon trading, Faron Pharma shares were holding above that level, 3.3% higher at 63p.
READ: Faron Pharma chief executive says Clevegen results suggest it can be a new tool against cancer
In addition, the group said that 3,584,461 shares will be issued at an equivalent euro Issue price of 70.2 cents per share under a subscription to certain directors and a member of Faron’s Scientific Advisory Board.
The company said the fundraising’s proceeds will be used to advance the phase I/II MATINS trial for its immunotherapy cancer treatment Clevegen.
The group revealed that the MATINS study has now recruited four subjects with no safety concerns at 0.3 and 1.0 mg/kg dosing.
Faron Pharma pointed out that it has now also received a tumour imaging report on patient number two, a colorectal cancer sufferer, indicating a partial response after having previously been treated with six different anti-cancer drugs, which had all failed.
It added that, as the trial is an open-label study, the company receives new information on the progress of dose escalation and safety as the trial progresses and will announce material updates when appropriate.
The firm said the funds will also be used to further the development of lung inflammation treatment, Traumakine through the design and preparation of a global Phase III clinical trial, CALIBER, as well as for advancing partnering discussions in respect of both Traumakine and Clevegen.
Dr Markku Jalkanen, Faron’s CEO commented: "This provides Faron with the opportunity to further two significant clinical programmes, which aim to help people with serious life-threatening conditions like organ damage and cancer.
“I am also extremely happy with the level of support indicated by existing shareholders, Company directors and employees in this financing round. We are very excited to have two clinical programmes to progress further towards effective treatments."
-- Adds placing result, updates share price --