Mesoblast Gain May Signal Biotech Recovery In ASX Health Stocks
The biotech industry has been hit by an unprecedented sell-off over the past year, with most equities falling by more than 50%.
However, many recent market fund raises suggest that the battered sector may be on the verge of recovery.
Mesoblast (AS:MSB), a market leader in the pharma stock industry, disclosed last week that it had successfully raised US$45 million in a private placement capital increase.
They want to get remestemcel-L, their flagship medicine, approved by the Food and Drug Administration in the United States for use in treating children with steroid-refractory acute graft-versus-host disease (SR-aGVHD).
In addition, other ASX-listed biotech firms have said publicly today that they too will soon be seeking external financing.
Another, aiming to raise US$170m, has already secured US$90m.
Another expert in treating eye problems has signed a non-dilutive fundraising agreement with Carlyle and Abingworth for up to US$170 million.
The company plans to put the money toward pre-commercialization efforts and Phase 3 clinical studies of OPT-302 for treating wet AMD.
Launch Therapeutics, founded specifically for this transaction, will receive US$50 million shortly after Opthea gets the money from the first tranche of the placement. The remaining funding for the agreement comes in two more subsequent tranches.
Today, it secured binding commitments for a $90 million, two-tranche placement at $1.15 per share, bringing the total amount raised thus far to $120 million.
“This well-supported placement has seen a high level of demand from existing and new institutional investors, including large global and US-based funds,” stated Dr. Megan Baldwin, CEO of Opthea Ltd.
Paradigm raised $66 million
Earlier today, Paradigm Biopharma (ASX:PAR) announced its intention to seek funding for $66 million to forward its Phase 3 clinical program and new drug application (NDA) related activities.
The $66 million is made up of a $45.7 million institutional placement and a $20.3 million pro-rata non-renounceable entitlement offer at $1.30 per share.
The first UK site for the Phase 3 study of the company’s flagship medication Zilosul for osteoarthritis was just activated.
Plans to raise $8 million for proteomics
An $8 million share placement at 85 cents per share has been committed to by Proteomics (ASX:PIQ).
These monies will be utilized to establish a distribution network for the PromarkerD predictive test for diabetic kidney disease in the United States and to begin manufacturing the test.
Dr. Richard Lipscombe, CEO of Proteomics, has stated that the company has reached a pivotal juncture in its growth, as the path to commercialization of the PromarkerD test in the United States is now evident.
He remarked that the “large capital injection” would guarantee that “our currently planned operations in these areas are fully funded.”
A Chinese investor has invested in Telix
On the other hand, Telix Pharma (ASX:TLX) has obtained funding from its joint venture partner, Hong Kong-traded Grand Pharmaceutical (formerly known as China Grand Pharma).
Grand Pharma filed a statement to the Hong Kong Stock Exchange today, briefly mentioning the transaction but providing no other specifics.
CEO of Telix Dr. Christian Behrenbruch responded:
Our partnership with China Grand Pharma is more solid than ever.
Our imaging and therapeutic product candidates continue progressing toward beginning clinical trials in China.
We are excited to continue working together on this exciting project, which will benefit both our firms and the patients who will use the products developed through this alliance.