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Actinogen Medical attracts $15 million to progress Alzheimer’s disease therapy

The company's shares are trading about 9% higher intra-day, at 4.9 cents.
AUSTRALIAN CURRENCY
Significant investment from a leading US biotech investor

Actinogen Medical Ltd (ASX:ACW) has successfully raised $15 million through an institutional placement at a price of 5 cents per share.

The placement coincides with the positive outcome revealed today in an interim analysis of XanADu, Actinogen’s phase II clinical trial of Xanamem in Alzheimer’s disease.

Xanamem is a promising new therapy for Alzheimer’s disease which works by blocking the excess production of cortisol - the stress hormone – through the inhibition of an enzyme in the brain.

Strong institutional support

The placement has received strong interest from institutional investors, with specialist US biotech investment fund Biotechnology Value Fund, L.P. and certain of its affiliates to take a cornerstone position of $10.5 million.

Leading Australian institutional investors Platinum Investment Management Limited and Australian Ethical Investment have also participated in the placement.

The funds raised will be used to advance Actinogen’s development plans, including a study exploring a higher dose of Xanamem in Alzheimer’s disease and studies conducted in alternative clinical indications.

Expansion of the development plan for Xanamem into these new indications will enhance the company’s data set, potentially adding substantial value to ongoing discussions with prospective partners.

Positive outcome from interim analysis

A total of 100 patients have been enrolled in the XanADu trial, with enrolment expected to complete in the fourth quarter of calendar year 2018.

In an interim analysis, the Data Safety Monitoring Board (DSMB) has recommended that the XanADu trial continue without modification.

Actinogen chief executive officer Dr Bill Ketelbey said: “We’re delighted with the recommendation from the DSMB to continue the trial without modification and it helps build our confidence and optimism in the potential of Xanamem to be an effective treatment for Alzheimer’s disease.

“If Xanamem is shown to safely and effectively treat dementia due to Alzheimer’s disease, it would represent a significant breakthrough in the management of this devastating disease.

“We eagerly await the completion of the XanADu enrolment before the end of 2018 and the review of the full dataset in Q2 2019”.

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Actinogen Medical Ltd Timeline

Newswire
December 30 2016

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