Synairgen, a Southampton-based research firm, has placed around 5.56m shares at 45p each, enabling the firm to progress with its primary programme following the successful clinical trial results of an asthma treatment product.
The placing has raised £2.5m before expenses. In a related transaction, Lansdowne Partners and IP Group are subscribing for 1.1m and 1.01m placing shares respectively, giving them an interest in 15m and 13.7m, representing 20.00% and 18.24% of the company's enlarged issued share capital, respectively.
The proceeds will be used to further develop its asthma treatment programme, which, following recent trials, has confirmed clinically important and statistically significant differences in favour of inhaled interferon beta as compared to placebo for patients with "difficult to treat" asthma (estimated to be 10% -20% in the adult asthma population) across a number of recognised asthma trial endpoints such as asthma symptoms, lung function, and exacerbations.
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As a result of the positive data, Synairgen believes that it is in a strong position to partner the programme to progress inhaled IFN-beta for multiple indications.
As part of this process, and in order to ensure that Synairgen achieves the maximum value in any potential partnership deal, the company now intends to use the proceeds of the placing to bring forward a biomarker programme to support the development of inhaled IFN-beta and to further characterise the responder population.
Funds will also be used to progress the company's drug development plan to maintain momentum on the programme and to be ready to commence the next planned studies with a partner in asthma and COPD in 2013.
In addition, some of the funds will be used to initiate the firm's interaction with the US government in order to position it ahead of an exploration into the potential of inhaled IFN-beta as a broad spectrum antiviral for severe viral lung infections. Remaining funds will be used for working capital requirements.
The shares will be admitted onto AIM on July 23rd.
The share price fell 8.91% to 46p by 09:49.
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