PharmAust raises $7.8m in oversubscribed SPP to advance monepantel for MND/ALS treatment

PharmAust (ASX: PAA) has raised $7.8 million in a share purchase plan (SPP) to accelerate development of its lead candidate monepantel as a viable treatment for motor neurone disease (MND) / amyotrophic lateral sclerosis (ALS).

Shareholder demand for the raising was greater than expected and exceeded the initial target of $2m, with the additional $5.8m expected to provide PharmAust with an opportunity to strengthen its balance sheet and minimise future funding requirements.

PharmAust will issue approximately 41.09 million new and fully-paid ordinary shares to shareholders this week.

HEALEY ALS trial

Funds raised under the SPP will be primarily used to finalise preparations for PharmAust’s involvement in the prestigious HEALEY ALS Phase 2/3 platform trial being conducted in the US.

Monepantel was selected this week for inclusion in the trial, which aims to expedite the study of multiple therapies, increase patient access, reduce costs and shorten development timelines.

PharmAust will work with the trial design team to develop a regimen-specific protocol with information relating to monepantel.

GMP production

Proceeds will also be applied to good manufacturing practices (GMP) production, pre-clinical models for other neurodegenerative diseases, regulatory filings and working capital.

The SPP complements PharmAust’s recent share placement to institutional and sophisticated investors, which raised $10m at an issue price of $0.19 per share.

Market endorsement

Chair Sergio Duchini said the capital raisings had exceeded expectations.

“The endorsement from our shareholders and investors strengthens our commitment to a refreshed strategic direction in advancing monepantel for neurodegenerative conditions,” he said.

“We are now well positioned to finalise preparations towards commencing a pivotal registration study for the treatment of MND/ALS, and we look forward to keeping shareholders up-to-date on our progress.”