24th Oct 2016 07:58
LONDON (Alliance News) - Ergomed PLC on Monday said its Swedish co-development partner Dilaforette AB intends to undertake an initial public offering and change its name to Modus Therapeutics Holding AB.
Clinical trial services and drug development company Ergomed said a rights issue is planned in connection with the initial public offering in order to finance the further clinical development of sevuparin, which Ergomed and Modus are co-developing.
The product is currently in a phase 2 clinical trial to evaluate its treatment of sickle cell disease.
As co-development partner, Ergomed co-invests in the trial in return for an equity stake in Modus and is a shareholder of the company.
Ergomed did not say where Stockholm-based Modus plans to list or state the size of its stake in Modus.
"We are delighted to see our co-development partner Modus Therapeutics making significant progress as it plans an initial public offering. The company's planned rights issue to help finance sevuparin for the treatment of sickle cell disease is welcomed by Ergomed as we jointly seek to advance the treatment through clinical development," said Ergomed Chief Executive Miroslav Reljanovic.
Shares in Ergomed were up 2.0% at 125.00 pence on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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