HIV drug, In still challenging times for biotech companies, Avexa (ASX: AVX) has managed to buck the trend to raise $18 million via a rights issue (oversubscribed) and placements, including a new investment of $1 million from a US institution. The company placed 15 million shares at 7 cents per share, at the same price as the rights issue.
Why the demand? Excitement is building for release of data from the Company’s Phase III trials - of apricitabine (ATC), an anti- HIV drug which has successfully completed the 48 week dosing of its Phase IIb trial. Those are expected in June 2009.
With the success the company has to date on its lead program, Avexa entered into a six-month, worldwide exclusive option agreement with Tibotec Pharmaceuticals (a Johnson & Johnson company) for the two companies to formalise a licensing agreement. The company recently released positive 96 week data from its Phase IIb trial extension.
Julian Chick, Chief Executive Officer said the near-term apricitabine, or ATC opportunity spoke volumes as to the reasons for the support from investors in the capital raising.
Avexa will announce the result of the DSMB analysis of the 16 week Phase III data in June, and will continue to explore the best options for the best road to commercialise ATC.
The next quarter looks to be very interesting indeed for Avexa now it has the cash raised and no longer an issue.
Friday, May 29, 2009
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