Suda raises $5.6m for drug development

Perth-based drug company Suda has raised $5.6 million to be used for its ArTiMist malaria treatment and other development products.

The money was raised through a placement of 170 million shares at a price of 3.3 cents per share, a 6 per cent premium to the 30-day volume-weighted average price.

The company will strengthen its balance sheet while also utilising the funds to establish an in-house formulation laboratory and expand its existing managerial team.

"These funds allow us to build of the strong foundations we have laid in the field of oro-mucosal drug delivery. Our objectives over the next 12 to 18 months include some key value inflection points based on licensing or outright sales of our lead projects," chief executive Stephen Carter said.

"Over the past three years we have been working to shape Suda into a leading oro-mucosal drug delivery company, underpinned by a fast-growing medical supplies subsidiary."

This follows Suda's announcement yesterday of a new agreement with UK-based company ProtoPharma to enhance its ArTiMist project for commercialisation.