Biotron Announces $2.5 Million Capital Raising to Fund Sedarex Acquisition
Biotron (ASX: BIT) has announced the acquisition of unlisted company Sedarex Limited, the owner of SedRx — a patented next-generation general anaesthetic — alongside a $2.5 million capital raising to fund the transaction and advance development programs.
The acquisition delivers Biotron a late-stage clinical asset supported by US Food and Drug Administration (FDA) and European Medicines Agency (EMA) regulatory pathways.
Managing director Dr Michelle Miller said the deal diversifies Biotron’s portfolio beyond its antiviral programs while adding a de-risked therapeutic with clear commercial potential.
Next-Generation Anaesthetic Technology
Sedarex holds global patents for SedRx, a new formulation of the proven anaesthetic agent alfaxalone that replaced the original Althesin solvent – which had been linked to anaphylactic reactions – with the FDA-approved sulfobutyl ether cyclodextrin (SBECD).
Clinical studies have since demonstrated superior safety, stable blood pressure, and respiration during induction, as well as faster cognitive recovery compared with current market leader propofol.
Dr Miller said SedRx’s strong clinical results and regulatory support position it for accelerated approval via the FDA’s 505(b)(2) pathway and a potential abridged process in Europe.
Sedarex is also exploring new neurological indications to extend patent life and open additional high-growth markets.
Acquisition and Funding Structure
Biotron will acquire 100% of Sedarex through the issue of 500 million new shares valued at $1.5m, with additional milestone payments of $250,000 in shares upon achievement of regulatory and development goals.
The acquisition remains subject to shareholder approval, due diligence and completion of the accompanying capital raising.
The transaction terms include the appointment of a Sedarex nominee to the Biotron board upon completion.
Biotron believes the acquisition will significantly strengthen its clinical pipeline by adding a late-stage product capable of near-term value generation.
Capital Raising to Support Development
To fund the acquisition and related development activities, Biotron has secured commitments for a $1m placement at $0.003 per share, with one option exercisable at $0.02 for every two shares issued, and will follow with a $1.5m non-renounceable rights issue on the same terms.
Funds will support the company’s regulatory engagement in Europe and the US, animal model testing for SedRx’s new indication, and associated patent and corporate costs.
Peak Asset Management, which introduced the Sedarex opportunity, is acting as lead manager for the placement and rights issue, and has committed to underwrite any shortfall.
Biotron sees the transaction as a significant milestone in its evolution, combining its antiviral expertise with a new late-stage therapeutic asset designed to meet unmet medical needs in anaesthesia and neuroscience.