(Alliance News) - Mereo BioPharma Group PLC on Thursday said it has completed a USD70 million capital raise in a private placement with US-based investors.
Shares in the company surged on Thursday, more than doubling to 51.60 pence each, shortly before market close in London.
Mereo said USD19.4 million was raised in a placing of 89.1 million shares, with a further USD50.6 million secured from convertible loan notes.
Chief Executive Officer Denise Scots-Knight said: "We are delighted to have attracted the support of such a broad range of high-quality institutional investors."
The company also unveiled plans to progress its development of its etigilimab cancer medication with a phase 1b study in the fourth quarter of 2020.
Etigilimab binds to TIGIT, a receptor that stops the body's immune system from attacking cancer cells. By binding to TIGIT, etigilimab allows immune cells called T-cells to attack the cancer.
Scots-Knight added: "We are pleased to also be announcing today that we plan to progress etigilimab into a Phase 1b study and believe etigilimab has the potential to target a significant unmet need in oncology. We look forward to progressing etigilimab, setrusumab and alvelestat further and believe this fundraising leaves Mereo extremely well-placed to progress on our strategy".
By Eric Cunha; ericcunha@alliancenews.com
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