Phylogica invests $15m into Vision Pharma

Biotech company Phylogica announced it had increased its shareholding in Vision Pharma to 90 per cent, following a $15 million investment using funds it had raised through a recent rights issue.

Phylogica partnered with Lions Eye Institute in October to form Vision Pharma, which specialises in the development of therapies for blinding eye diseases.

Earlier this month, Phylogica raised $14.3 million through the issue of approximately 260 million shares at 5.5 cents per share, fully underwritten by its major shareholder Alan Tribe.

Phylogica said it would use the proceeds to fund pre-clinical and clinical development of its lead drug program, undertaken by Vision.

The program is a treatment for a form of Retinitis Pigmentosa – a genetic disorder that causes loss of vision, and is the leading cause of childhood blindness.

Phylogica said Vision has demonstrated the ability to reverse the disease in human retinal cells.

“Vision now has the funding necessary to progress its lead program into a pivotal clinical trial,” Phylogica said.

“Successful outcomes in the pivotal clinical trial will enable registration of the drug for marketing.”

Phylogica said Lions Eye Institute has the right to contribute additional funding to the joint venture to increase its shareholding in Vision to up to 15 per cent.

Shares in Phylogica were up 1.79 per cent to trade at 5.7 cents per share, as at 12:50pm AEDT.