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LONDON (Alliance News) - Finland's Faron Pharmaceuticals Oy on Tuesday said it expects further disappointing results from Traumakine, as it plans a share placing.
Faron is currently awaiting for results from a phase III trial for Traumakine in Japan, and it understands concomitant corticosteroid use was high during the tests.
As a result, it expects similar results to those achieved in Faron's own INTEREST trial last summer where Traumakine did not meet its primary endpoint.
Traumakine is a proposed treatment for acute respiratory distress syndrome.
Turning to the fundraise, Faron is targeting a total of EUR3 million, without giving any further specific details.
The cash will be used to develop both Traumakine and its other candidate Clevegen, as well as push forward partnership on both. The fundraise would provide the company with cash up to the third quarter of 2019.
Panmure Gordon UK Ltd will be acting as nominated advisor, bookrunner, and broker.
Chief Executive Markku Jalkanen said: "Our staff and scientific collaborators have done a tremendous job of identifying reasons behind the unexpected INTEREST study results, as well as advancing the MATINS trial to dose escalation stage.
"This provides Faron with the opportunity to further two significant clinical programmes, which aim to help people with serious life threatening conditions like organ damage and cancer. I am also extremely happy with the level of support indicated by existing shareholders, company directors and employees in this financing round."
"We are very excited to have two clinical programmes to progress further towards effective treatments," Jalkanen added.
Shares were 3.2% higher on Tuesday at a price of 62.93 pence each.