Allied Healthcare Group (ASX: AHZ) has increased its shareholding in Coridon after investing a further A$1 million.
This is a strategic move for Allied Healthcare, giving the company a 44.4% share in Coridon and maintaining its focus on unique drug programs with global implications.
Coridon is rapidly advancing towards its Phase I study for a herpes vaccine and is making further progress on its Human Papillomavirus (HPV) therapeutic vaccine program.
Lee Rodne, Allied Healthcare Group managing director, said, “Our investment is timed as Coridon progresses its development programs.
“We will continue to increase this holding as Coridon pushes towards its Phase I trial and beyond – as outlined during the recent capital raising.”
Allied Healthcare received strong investor support for its recent capital raising, netting a further A$2 million.
This represents a take-up of over 40% of the rights issue and, importantly, Allied Healthcare has received strong interest in taking up the shortfall to raise the full $4.36 million.
This latest equity raising is in addition to $2 million raised in mid-March.
Importantly, the capital raising places Allied Healthcare in a strong financial position and removes concerns about future funding.
The remaining funding will be used to assist Coridon in progressing its vaccine programs.
Coridon successfully completed pre-clinical efficacy testing of its HSV-2 herpes vaccine in October last year and is nearing clinical studies.
The company tested a number of different formulations of the vaccine which proved 100% effective at protecting animals against HSV-2 infection.
Meanwhile, Coridon’s next generation therapeutic Human Papillomavirus (HPV) vaccine is targeting one of the most common sexually transmitted diseases in the world.
HPV is associated with several human cancers, most notably cervical cancer.
To give an indication of the revenue potential of a HPV vaccine, the two currently used vaccines generate in excess of $1.5 billion in sales annually.
Coridon’s HPV vaccine has been designed to combat existing infection with the HPV virus, to prevent and treat cervical and other HPV-associated cancers.
The development program is based on preliminary work by Coridon founder Professor Ian Frazer’s team and follows on from Frazer’s work that resulted in the successful cervical cancer preventative vaccines – Gardasil®, marketed by Merck, and Cervarix, marketed by GlaxoSmithKline.
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