Radiopharm Theranostics boosts clinical trials pipeline with $1.9m R&D advance

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By Colin Hay - 
Radiopharm Theranostics ASX RAD funding agreement biotech cancer treatment

Radiopharm Theranostics (ASX: RAD) continues to build up its bank balance with the receipt of $1.9 million as an advance on its anticipated FY24 research and development (R&D) tax incentive (RDTI).

The funds have been provided by Radium Capital and are to be mostly used to support Radiopharm’s clinical trial pipeline.

Repayment to Radium Capital is timed to follow the anticipated receipt of the company’s FY24 RDTI and is due by 31 December 2024.

The facility can be repaid at any time prior to this date without penalty.

February capital raising

The R&D capital injection follows Radiopharm’s reaching share subscription and share purchase agreements in early February with Lind Global Fund II, an entity managed by New York-based The Lind Partners.

The agreements are providing initial funding of $1.5m and total funding of up to $12.5m.

The share purchase agreement is a staged private placement of up to $11.3m in monthly instalments of between $50,000 and $1m each over an initial 12-month period subject to shareholder approval, with an initial instalment of $300,000.

The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Australia, Canada and the UK.

Technical success

News of the Lind funding agreements came a day after Radiopharm announced a paper had been published on the success of its study featuring DUNP19 and the treatment of cancer.

The paper highlighted that for the very first time DUNP19 can be used in various cancer models for the detection and targeting of leucine-rich repeat containing 15 (LRRC15)-expressing cancers.

LRRC15 is a cellular marker and novel therapeutic target in solid tumours (breast, head and neck, lung, pancreatic) and in cancers that arise from connective tissue (osteosarcoma, glioblastoma, melanoma).

The findings propose a novel technique for imaging and treating a wide range of aggressive tumours that express LRRC15 and have limited options for targeted therapy.

The results also provided early evidence for the ability of 177Lu-DUNP19 to target pathways involved in immunotherapy resistance and a poor prognosis.

DUNP19 is currently under pre-clinical investigation by Radiopharm as a therapeutic monoclonal antibody labeled with the beta-emitting radioisotope terbium-161.