Ann: Letter to Shareholders re Rights Issue , page-96

Hey morgenlofting, the below is a snippet from a Biotech News article I post earlier, it explains it rather well, link to full article below that:

The trial will likely cost around $20 million, and Alchemia yesterday launched a $15.5 million renounceable rights issue to raise enough cash to lay the groundwork for the trial ahead of the expected revenue stream from Dr Reddy’s.

That won’t be enough cash for the company to finish the trial in the absence of revenue from fondaparinux, but Smith said the company was keen to get the trial set up so no more drug development time was lost.

“We’ll start the preparations for the Phase 3 now, but we will not commit fully to it until we have fondaparinux on the market, or we have a clear site of revenue from it,” he said.

“So we’ll look to sign up a CRO [contract research organisation] for the trial, we’ll get the sites selected, ethics approvals, the drug substance [manufactured] and the trial insurance – we’ll do all of those things so we’re ready to go.”


http://biotechnologynews.net/storyview.asp?storyid=1039257