Pharmaxis Ltd (ASX:PXS) has raised approximately $6.5 million from UK-based Arix Bioscience Plc (LON:ARIX) via the first tranche of a placement of shares at 32.5 cents each for a 5.6% interest.
In its first Australian investment, Arix has committed to invest a total of $14.2 million as part of Pharmaxis’ two-tranche share placement to sophisticated and institutional investors.
Subject to shareholder approval on September 17, 2018, Arix will emerge with an 11.1% shareholding.
READ: Pharmaxis secures $24 million at premium to support partnering negotiations
The proceeds of the placement will be used to advance Pharmaxis research into new treatments for a range of fibrotic diseases, including non-alcoholic Steatohepatitis (NASH), Idiopathic Pulmonary Fibrosis (IPF), heart and kidney fibrosis.
Pharmaxis’ lead development program is an anti-fibrotic Lysyl Oxidase-Like type 2 (LOXL2) inhibitor that acts at a crucial stage of pathogenic fibrosis.
The final stages of the phase I studies and phase II enabling toxicity studies for LOXL2 are expected to be completed in the third quarter of 2018.
Early LOXL2 results have been attracting interest
As disclosed recently, data received to date from the phase I LOXL2 studies has attracted multiple interested potential partners.
Importantly, Pharmaxis has previously shown it can execute on sale agreements with big pharmaceutical companies after finalising a 2015 deal with Boehringer Ingelheim with significant upfront and milestone payments for its clinical research.