Pharma Capital

Faron Pharmaceuticals raises £5mln in premium placing

The new funds will be used to expand the pre-clinical and early-clinical development of the company’s immuno-oncology drug, Clevegen
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The new funds will be used to expand the pre-clinical and early-clinical development

Faron Pharmaceuticals Oy (LON:FARN) received a strong response to £5mln fund-raising via a placing of shares at a premium to the current price.

It placed all 60mln shares it hoped to issue to a handful of institutional clients at 350p each, just above Monday’s close of 347.5p.

The new funds will be used to expand the pre-clinical and early-clinical development of the company’s immuno-oncology drug, Clevegen.

READ - Faron Pharmaceuticals drug Traumakine goes into phase II clinical trials for second major indication

WATCH - Faron Pharmaceuticals drug Traumakine goes into phase II clinical trials for second major indication

Faron’s team will assess the treatment’s potential in Clever-1 positive solid tumours, including ovarian, pancreas and melanoma.

“We believe that Clevegen's ability to remove immune suppression around tumours will be the next important step in the fight against tumour growth and spread, and could lead to complete cancer remission as well as providing long term vaccination against future tumours from the patient's own immune system,” said chief executive Dr Markku Jalkanen.

The cash will also be used to strengthen the balance sheet.

After getting the share issue away succesfully, Dr Jalkanen said: "We are delighted by the interest we have received in this oversubscribed financing round, and would like to thank our existing and new institutional investors for their support and continued committment to Faron.

"This funding will be invaluable as we continue the advancement of our programmes during what is set to be a pivotal year for the company.

"As well as expecting to receive data from our Phase III INTEREST trial in the second half of the year, we can now look forward to expanding the pre-clinical and planned clinical development of Clevegen into further solid tumour indications including ovarian, pancreatic and melanoma.

"We believe that Clevegen's ability to remove immune suppressision around tumours will be the next important step in the fight against tumour growth and spread, and could lead to complete cancer remission as well as providing long term vaccination against future tumours from the patient's own immune system."

Faron’s lead drug is Traumakine, used to treat patients with acute respiratory distress syndrome after delivering some remarkable results earlier in its development.

The phase-III INTEREST trial could be dial moving when we receive the first read-out in the second-half.

Shares in Faron were up 20p at 375p towards the end of the trading session.

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