PharmAust raises $3.1m for cancer trials

Nedlands-based pharmaceutical company PharmAust has raised about $3.1 million in an oversubscribed placement to fund clinical trials for its cancer drug.

In a statement today, PharmAust said it would issue 400 million shares at 0.78 cents a share to sophisticated and professional investors through lead manager Blue Ocean Equities.

PharmAust executive chairman Roger Aston said the placement was targeted to investors and institutions that recognised the potential of the company’s oncology programs.

“The strong signal of support from new shareholders reflects the ongoing endorsement of PharmAust’s assets and business strategy,” he said.

The company said the funds would accelerate completion of its phase I/II clinical trial at the Royal Adelaide Hospital, following the demonstration of a successful reduction of a cancer marker in patients receiving its PPL-1 cancer drug.

PharmAust said the proceeds of the placement would also be used to initiate a phase II trial to investigate the use of the PPL-1 drug in conjunction with chemotherapy in patients with cancer.

It is also looking to move its subsidiary Epichem into a larger building at Technology Park next to Curtin University in Bentley to remove existing capacity restraints.

PharmAust shares closed unchanged at 0.9 cents per share.