6th Jun 2016 07:43
LONDON (Alliance News) - UK-based Mereo BioPharma Group PLC Monday said it has raised GBP14.8 million ahead of its expected admission to trading on AIM Thursday.
This includes GBP11.4 million raised in a private placing at 221 pence, and a cash investment from existing shareholder Novartis AG, the Swiss drugmaker, by way of a convertible loan amounting to GBP3.5 million.
Last July, the company bought three phase II product candidates in an initial portfolio from Novartis, and secured GBP20 million in funding in a private placement, with a further GBP56.5 million committed.
Mereo said that, since then, it has begun a phase II and phase IIb study for two of the product candidates, and plans to begin registration studies in the second half of the year for a third product candidate.
"Our strategy is to build, over time, a diverse portfolio, and having publically-traded shares, will provide additional flexibility to secure the next product candidates which are likely to be primarily sourced from large pharmaceutical companies. Such product candidates are expected to have compelling market potential, robust preclinical, clinical and manufacturing data packages, and a clear path to a significant value inflection point," said Chief Executive Officer Denise Scots-Knight in a statement.
RBC Capital Markets is acting as Mereo's global coordinator, private placement agent and broker, and Cantor Fitzgerald Europe is acting as nominated adviser, private placement agent and broker. Evercore is acting as financial adviser.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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