25th Sep 2018 13:48
LONDON (Alliance News) - Synairgen PLC on Tuesday announced fundraising to cover the clinical trials of its wholly-owned antiviral therapy SNG001 after its loss widened in the first half of 2018.
The drug development company said it intends to raise GBP2.9 million through a share placing and subscription.
Synairgen said it will issue 17.7 million shares at 16 pence per share. The placing price represents 11% discount to the closing mid market price as at Monday.
The stock was trading 0.8% lower on the day Tuesday at 17.80p per share.
The funds will go towards the expansion of the phase II clinical trial in chronic obstructive pulmonary disease. Synairgen plans to increase the size of the study to 120 patients, who have confirmed respiratory virus infections, from 80 patients planned before.
finnCap Ltd is acting as nominated adviser and sole bookrunner in connection with the fundraise.
In the separate statement, Synairgen said its pretax loss widened to GBP1.9 million in the six months to the end of June compared to GBP1.6 million reported for the same period a year ago.
Revenue remained broadly flat year-on-year at 26,000. Meanwhile, research & development expenses rose to GBP1.4 million from GBP1.1 million, as the company advanced its trial of inhaled interferon beta for COPD patients.
"Synairgen has made good progress in the first half of 2018," said Chief Executive Richard Marsden.
"We are pleased to see that the Phase II clinical trial assessing interferon beta in COPD has started well and we look forward to continuing with the second part of the trial later this year," added Marsden.
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