ImmuPharma to raise £7.5m for 'blockbuster' drug

The 'blockbuster' potential of a drug in development saw ImmuPharma proposing a £7.5m fund raise on Friday.

The AIM-traded specialist drug discovery and development company said the deal included a proposed conditional non-preemptive placing of no less than 11,824,877 Placing Shares at a price of 26p each, to raise around £3.1m.

It also included a proposed entry by ImmuPharma into a subscription agreement with Lanstead Capital - an institutional investor - together with a related sharing agreement, to raise around £4.4m.

"ImmuPharma is in an enviable position of owning a potential blockbuster drug in Lupuzor, which has been awarded the gold standard by the (US) Food and Drug Administration of a special protocol assessment and fast track status due to its strong efficacy and safety profile", said chairman Tim McCarthy.

He said the proceeds of the placing and subscription would allow the firm to complete the Phase III trial, which had already commenced.

"We are confident that throughout this year and the next, further value-enhancing news flow will be announced on the progress of our Lupuzor Phase III trial with top line results at the end of 2017, as well as providing updates on the development of our earlier stage pipeline", McCarthy added.

The subscription and placement were conditional on the approval of resolutions by shareholders at a general meeting, which was yet to be notified, and on the admission of the relevant shares to trading on AIM.