22nd Jan 2015 08:32
LONDON (Alliance News) - Shares in ImmuPharma PLC are trading up 22% Thursday morning after it said it has entered an agreement with Simbec-Orion Group Ltd to begin a phase III study of ImmuPharma's Lupuzor treatment for lupus and will get an investment from the company.
Simbec-Orion has agreed it will reinvest a significant proportion of its fees into new ImmuPharma shares at a price of 150 pence per share, a 206% premium on the company's closing mid-market price Wednesday. Shares in ImmuPharma are trading up 22% at 60.00 pence Thursday morning.
It is expected that Simbec-Orion will subscribe for around 900,000 new shares over the duration of the study.
ImmuPharma said that the deal is attractive because it allows it to retain the rights to Lupuzor until commercialisation.
"This opens many options for the company for further corporate deals including following in the path of all "big biotechs" by generating our own sales," said Chief Executive Officer Dimitri Dimitriou in a statement.
Lupuzo has been granted fast-track status by the US Food and Drug Administration. The company said a multi-centre study will commence immediately, and will recruit patients across Europe, the US and other regions.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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