Pharmaxis Ltd (ASX:PXS, OTC:PMXSF) has announced a A$7.2 million placement, consisting of approximately 68.2 million fully paid ordinary shares at $0.105 per share within the company’s 15% placement capacity, receiving oversubscribed commitments from sophisticated and institutional investors.
The company is also commencing a share purchase plan (SPP) that will provide shareholders – of record on November 16, 2021 – the ability to purchase up to A$30,000 of Pharmaxis ordinary fully paid shares (285,714 shares) at the same A$0.105 price as the placement. PXS is seeking to raise A$2 million under the SPP.
The funds will be used to strengthen Pharmaxis’ balance sheet as it conducts clinical studies of its lead drug PXS-5505 in cancer – a phase 2a study in myelofibrosis is already recruiting and a phase 1c/2a investigator-led study in liver cancer (Hepatocellular Carcinoma) is being conducted with the University of Rochester, expected to commence first half of 2022.
Read: Pharmaxis receives FDA clearance to progress cancer drug to Phase 2 study in liver cancer
A study of Pharmaxis topical drug PXS-6302 in patients with wound and burns scarring is also expected to commence dosing in patients later this quarter.
“Entering transformational 12 months”
Pharmaxis CEO Gary Phillips commented: “Pharmaxis is entering a transformational 12 months with two clinical studies expected to deliver safety and efficacy data in diseases with high unmet need and addressable markets of over $1 billion by the end of 2022.
“The opportunity to add a third study in liver cancer triggered the capital raise and we are delighted by the response both from our existing shareholders and other knowledgeable investors.
“I would also like to welcome our new institutional investors and acknowledge the strong support we have seen from the Morgans network.”
The oversubscribed placement received strong support from existing substantial shareholders BVF Partners LP, Karst Peak Capital Limited (LSE:CAPD) and D&A Income Ltd, together with several new institutional and sophisticated investors.
Morgans Corporate Limited acted as the sole lead manager and bookrunner to the placement.
About Pharmaxis
Pharmaxis is an Australian pharmaceutical research company developing drugs for inflammatory and fibrotic diseases, with a focus on myelofibrosis.
The company has a highly productive drug discovery engine, drug candidates in clinical trials and two respiratory products approved in global markets generating ongoing revenue.
Pharmaxis’ lead drug candidate (PXS-5505) is for the treatment of the bone marrow cancer myelofibrosis, which affects 1 in 500,000 people.
Another Pharmaxis drug discovery, PXS-6302 has entered a world-first clinical trial aiming to stop scars that are formed after surgery or trauma, particularly following burn injuries.