Viralytics Ltd (ASX:VLA) has received a boost for its cancer treatment development work with more than $29.6 million raised in a private placement to a leading Chinese life sciences company.
Lepu Medical Group has acquired more than 36 million shares at $0.82 each and now owns circa 13% of Viralytics.
The placement price represents a 27% premium to the 30-day volume weighted average price of Viralytics shares.
Treatments for a range of cancers
Viralytics is developing oncolytic immunotherapy treatments for a range of cancers.
The company’s lead investigational product, CAVATAK®, is being studied in clinical trials for the treatment of melanoma, as well as bladder and lung cancers.
Lepu Medical has made the investment as part of its strategic plan to expand into the field of cancer immunotherapy.
Dr Zhongjie Pu, chairman, said: “We have carefully reviewed the global oncolytic virus landscape and believe CAVATAK is the leading agent with demonstrated potential to enhance the activity of checkpoint inhibitors such as anti-PD-1 (or PD-L1) across many important cancer types.
“We also look forward to exploring possible collaborative opportunities with Viralytics as part of our goal to develop a significant position in the Chinese oncology market.”
Cash balance of more than $50 million
The placement has taken Viralytics’ cash balance to more than $50 million with another $6.4 expected from the R&D Tax Incentive program.
It will enable the Sydney-based company to accelerate its global clinical development program.