Faron Pharmaceuticals Limited (AIM:FARN, OTC:FPHAF) has confirmed it raised more than €8mln by issuing new stock, cash which it said will be used to accelerate work on its promising cancer candidate, which is in the early stages of its clinical journey.
The group issued just over 4.5mln shares at €1.85 each, a modest discount to Thursday’s closing price.
In a statement accompanying the close of the fundraising exercise, Faron said: “The primary reason for conducting the placing was to accelerate and expand the clinical development of the company's main drug candidate, bexmarilimab.
“Some of the proceeds will also be used to expand manufacturing capabilities, to support general corporate purposes and to strengthen the company's balance sheet.”
Bexmarilimab has shown promise. Recent data from its early-phase clinical trial showed patients taking its cancer drug enjoyed a significantly higher survival rate than those who didn’t receive it.
It was used on multiple different tumour types to assess both its safety and efficacy in the MATINS study designed to assess different dosing regimens.
The median overall survival rate of those participating in parts I and II of the evaluation and receiving the treatment was 14.9 months. This compared with 4.4 months for those who weren’t administered bexmarilimab.
Researchers found the Faron treatment induced a significant systemic interferon-gamma increase. This was indicative of it being able to activate an immune response in people with cancer, even those with cold tumours, that tend not to be susceptible to current immune-oncology drugs.
Scientists also discovered that bexmarilimab was well tolerated – even at higher dose levels, or where the frequency of administration was increased.
The highest clinical benefit was observed at 1 milligram per kilogram with weekly and three-weekly administration, investors were told. However, a clinical benefit was seen across all doses.