Drug developer C4X Discovery Holdings PLC (AIM:C4XD) confirmed that it raised £5.7mln via a share placing with institutional investors, led by the Polar Capital Biotechnology Fund, which is expected to stump up £3mln.
The proceeds from the sale of shares at 25p each will be used to strengthen the balance sheet as partnering discussions progress.
It will also be deployed to develop the drug pipeline and fund the next generation of early-stage assets.
Earlier this month, C4XD confirmed it is in "advanced partnering discussions" for a third asset discovered and developed by its research team.
It already has tie-ups with Sanofi, the French group, and Indivior, the FTSE 250 specialty pharma firm.
“With a strong balance sheet, state-of-the-art proprietary technologies, highly experienced scientific team, and industry experience, we believe C4XD is in a strong position to deliver shareholder value,” said chief executive Clive Dix.
He said: “This funding round, led by long-term investor, Polar Capital, further strengthens C4XD's balance sheet and is an endorsement of the great work we are doing across our pipeline of early-stage, high value small molecules intended for out-licensing to the pharmaceutical industry."