- Biopharma company Invex Therapeutics (IXC) has raised $26.2 million for its repurposed Exenatide drug
- The company is trialling the drug, which is typically taken to treat Type II diabetes, for use against Idiopathic Intracranial Hypertension, or IIH
- IIH is an unexplained increase in pressure in the skull that can cause headaches, ringing in the ears, and even blindness
- According to Invex, a recent Phase II trial showed clear evidence of Exenatide's ability to treat high skull pressure
- Now, the company has tapped institutional and professional investors for the extra funds to continue its clinical work
- Shares in Invex gained over 11 per cent today, closing worth $1.66 each
Biopharma company Invex Therapeutics (IXC) has raised $26.2 million for its repurposed Exenatide drug.
The capital raise comes after the company revealed positive Phase II clinical trial results which proved the drug's ability to treat Idiopathic Intracranial Hypertension (IIH).
Invex listed on the ASX in July 2019 and has since seen its share price increase in value by over 53 per cent. The company's focus is to repurpose Exenatide, which is approved for the treatment of Type II diabetes in the US, for the treatment of high pressure in the skull.
IIH is just that: an unexplained increase of pressure in the skull that can cause headaches, ringing in the ears, and even blindness.
On Wednesday, Invex revealed a Phase II study of the drug produced "clear evidence" that Exenatide can significantly reduce intracranial pressure (ICP) when taken twice per day.
Not only this, but secondary endpoints of the trial were also met — including a 7.7-day reduction in what the company calls Monthly Headache Days for IIH patients, as well as improved eyesight.
Importantly, the company said no patients lost weight during the study, so the positive results cannot be coincidental with weight loss, which is currently the only recommended way to reduce IIH symptoms.
Moreover, no serious side effects were recorded in patients taking Exenatide outside of nausea, which is a known adverse effect of the drug.
Bolstered balance sheet
To support further trials and clinical objectives, Invex will place just over 20 million new shares at $1.30 each today to raise the $26.2 million.
This represents a four per cent discount to the company's 15-day volume-weighted average price and a 13 per cent discount to the company's last closing price.
The capital raise will take place in two tranches, with the first set to raise $16.25 million without the need for shareholder approval. The second tranche will raise the remaining $9.95 million but upon shareholders approving the raise at the upcoming June Extraordinary General Meeting.
The placement has been taken up by institutional, professional, and sophisticated investors, with Andrew Forrest's Tattarang taking part to the tune of $5 million.
Shares in Invex closed 11.37 per cent higher today, worth $1.66 each. The company has a $91.3 million market cap.