(Alliance News) - Destiny Pharma PLC said Monday it is planning to raise GBP11.5 million to acquire the global rights to NTCD-M3, a Phase III ready asset for prevention of clostridium difficile infection recurrence.
The net proceeds will also enable the completion of Phase III clinical trial preparations, primarily CMC and clinical planning as well as providing additional working capital.
"Clostridium difficile is the leading cause of hospital acquired infection in the US and poor treatments lead to recurrence. In the US, there are about 500,000 cases of CDI each year; 25% of these initial cases then recur leading to 29,000 deaths per year. Current CDI treatment options are limited, with lower efficacy observed when patients are retreated with the same antibiotic for recurrence of CDI," Destiny added.
It continued: "NTCD-M3 is a potential breakthrough in CDI treatment which has completed a Phase II trial of 173 patients. Clinical data for NTCD-M3 appears superior to current treatments and drugs in development for the treatment of the recurrence of C. difficile infection."
Destiny has conditionally placed 11.4 million new shares at 65 pence each, hoping to raise about GBP7.5 million. It has also offered 3.2 million shares for subscription, at the same price, looking to raise GBP2.1 million.
Shares in Destiny closed 29% lower in London on Monday at 71.00p each.
On top of the placing and subscription, shareholders will be given the chance to subscribe for 3.1 million shares in an open offer - at the same price as the placing - to raise a further GBP2.0 million.
Chief Executive Neil Clark said: "We are delighted to announce this transaction which is a perfect fit with our strategic aim of developing novel treatments that prevent serious infections. The NTCD-M3 programme targets the prevention of the recurrence of clostridium difficile infection and has been developed through the world leading research of Professor Dale Gerding. We are very pleased that he will join Destiny Pharma as a key consultant and member of our Scientific Advisory Board as we prepare for the Phase III clinical trial.
"NTCD-M3 is a potential breakthrough in CDI treatment targeting a market that is forecast to grow to USD1.7 billion by 2026. It is a novel, late-stage clinical asset that expands our pipeline alongside XF-73 which is in Phase IIb for the prevention of post-surgical infections and is expected to report results in the first quarter of 2021."
finnCap Ltd is acting as nominated adviser and joint broker in connection with the placing and, WG Partners LLP is acting as joint broker.
By Paul McGowan; paulmcgowan@alliancenews.com
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Destiny Pharma. (DEST)