Viralytics (ASX: VLA) is raising up to $27.1 million to complete three key clinical trials for its CAVATAK anti-cancer drug and to advance more rapidly to commercialisation.
It will also ensure the company is fully funded until the end of 2016 and strengthen its balance sheet ahead of potential commercial negotiations.
The funds will enable it to complete:
- The Phase 2 CALM trial of CAVATAK in late stage melanoma patients;
- Phase 1/2 STORM trial assessing the multiple intravenous dosing of CAVATAK™ in patients with solid tumours including melanoma, prostate, lung or metastatic bladder cancers due to commence in February 2014; and
- Randomised Phase 2 trial in melanoma patients planned for commencement late 2014.
Viralytics has binding commitments to raise $23 million via a two tranche placement priced at $0.28 each to leading U.S. and UK –based specialist healthcare institutional investors.
It will also raise up to $4.1 million through a 1 for 6 non-renounceable entitlement offer at $0.28 per share.
The Placement and the Entitlement Offer price of $0.28 represents a 12.5% discount to the weighted average closing price for the fifteen trading days to 24 January 2014.
Earlier this month, the company achieved the target enrolment for the Phase 2 melanoma trial for CAVATAK in the treatment of late stage melanoma.
The 54th patient has been injected with the drug while interim results show that 14 of the 40 evaluable patients reaching the six month immune related Progression Free Survival target.
In addition, there is promising one year survival data with 12 of first 20 patients still alive at that stage.
Viralytics currently has a market capitalisation of $26.2 million.
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