4D pharma PLC (LON:DDDD) is to raise £17.3mln through a private placement of new shares at a price of 110p per share.
Two senior directors, Duncan Peyton (chief executive) and Alex Stevenson (chief scientific officer) are to chip in a further £1.44mln once 2020’s results have been released.
The fundraising is conditional on shareholders passing resolutions tomorrow (18 March 2021) for the merger with Longevity Acquisition Corporation (NASDAQ: LOAC) announced last October.
Duncan Peyton said: "This Fundraising involves a broad range of institutional investors, strengthening our international investor base.
“Combined with the imminent Merger and listing on NASDAQ expected to occur on 22 March 2021, 4D pharma is in a strong position to continue the development of the company and its pipeline of Live Biotherapeutics."
Specifically, Peyton said the new money would enable 4D Pharma to push ahead with lead oncology program, MRx0518 targeting a range of cancers, as well as other therapeutic areas such as neurological conditions.
The money raised will extend 4D's cash runway into the second quarter of 2022, he added.
Working in the emerging area of the human microbiome (the bacteria that reside mainly in the gut), 4D has developed Live Biotherapeutics — products that contain live organisms such as human commensal bacteria.
The approach focuses on single strains to assess specific mechanisms of action targeting a defined disease pathway.
Now in the early phase of clinical development, MRx0518 is being trialled as a single therapy for solid tumours and pancreatic cancer.
In particular, MRx0518 is being trialled to assess its potential to work synergistically with Merck’s blockbuster cancer treatment Keytruda to reengage the immune system.
Today’s fundraise will help complete an expanded Part B of an ongoing Phase I/II combination study of MRx0518 and Keytruda, 4D Pharma said.
Enrolment is currently expected to complete in the fourth quarter of 2021.
Other trials in the pipeline include a fourth clinical trial for urothelial carcinoma, an ongoing phase 1 trial in pancreatic cancer and to design a first in-human clinical trial for MRx0518 as a treatment for Parkinson’s Disease.
“We have a robust line up of milestones set for 2021 and with both our new US institutional support and upcoming NASDAQ listing, we look forward to providing updates from our novel, single-strain LBP programs to our expanded global audience," said Peyton.