ImmuPharma plc Raises €7 Million To Advance Programmes
Published: Dec 22, 2006
The new funds will be invested in the development of the Company's clinical and preclinical pipeline, of which the principal current assets include IPP-201101, a long-term treatment for Lupus, the life threatening auto immune disease which is due to commence Phase II/III trials in 2007.
ImmuPharma has issued 4,350,000 new ordinary shares at a price of 62p each, raising £2.697m from funds managed by Jupiter, Martin Currie and Powe Capital by way of a Placing. Application has been made to London Stock Exchange plc for the admission of the new ordinary shares to trading on AIM.
In addition, ING Belgium ("ING") has agreed to advance €3,000,000 to the Company's wholly owned subsidiary, ImmuPharma France SA, by way of a Bond which is interest free and unsecured, and ImmuPharma has issued Warrants whereby ING may subscribe €3,000,000 for 3,245,280 new ImmuPharma plc shares at any time during the three years ending 31 December 2009. At the Euro/Sterling exchange rate when these financing arrangements were agreed, the effective subscription price of the Warrants is 62p per share. There are arrangements in place to ensure that the Warrants are exercised to fund the repayment or buy-back of the Bond when required.
Following the share issue referred to above, ImmuPharma now has 72,488,149 ordinary shares of 10p each in issue, each of which entitles the holder to cast one vote in general meetings.
Richard Warr, Chairman, said: "We are delighted that our progress over the last year has led to institutional demand for ImmuPharma shares. We are pleased to welcome our new investors and thank our existing shareholders for their continuing support."
Dr. Robert Zimmer, President & Chief Scientific Officer said: "This placing comes at a very good time for ImmuPharma and ensures that we can maintain the momentum on all our promising development programmes."
For further information please contact:
Dimitri Dimitriou, Chief Executive Officer +44 20 7152 4080 Richard Warr, Chairman +44 20 7152 4080 Dr Robert Zimmer, President & Chief Scientific Officer +33 389 32 76 50
Dawnay, Day Corporate Finance Limited Nominated adviser
David Floyd +44 0 20 7509 4570
Buchanan Communications + 44 20 7466 5000
Lisa Baderoon Rebecca Skye-Dietrich
Notes to Editors:
ImmuPharma PLC is a drug discovery and development company headquartered in London, UK and quoted on AIM of the London Stock Exchange (LSE:IMM). It has research operations in France (ImmuPharma (France) SA) and Switzerland (ImmuPharma AG). ImmuPharma is dedicated to the development of novel drugs, largely based on peptide therapeutics, to treat serious medical conditions such as autoimmune diseases characterised by:
• blockbuster potential in niche markets • low promotional costs in few specialised physicians and centres and • lower risk of drug development and lower development costs
ImmuPharma is a currently developing drug candidates for three different medical conditions, each of which would represent a significant breakthrough in its field. The furthest advanced drug candidate targets Lupus, a disease for which there is currently no cure or specific treatment. The other two address moderate to severe pain (such as that experienced by cancer sufferers and post-operative patients), and MRSA and similar severe hospital-acquired resistant infections.
All three have significant sales potential as well as low marketing costs and a relatively low risk of development failure. One or more have the potential to be fast-tracked by the US Food and Drug Administration according to "Guidance for Industry: Fast Track Drug Development Programs – Designation, Development and Application Review" issued July 2004 and could therefore obtain their market authorization by 2010.
Key to the potential success of ImmuPharma is its unique collaborative agreement with Centre National de la Recherche Scientifique, France’s scientific research institution. This agreement grants ImmuPharma worldwide exclusive rights to exploit certain key discoveries.
In addition to its three leading drug candidates, ImmuPharma has a drug development pipeline using its rights to a virtual chemical library of hundreds of thousands of molecules as well as an innovative technology for converting peptides to drug candidates.
ImmuPharma has the option to commercialise its assets itself or to license them to other pharmaceutical companies at an earlier stage.
Treatment of Lupus (IPP-201101)
This is a long-term treatment for Lupus, a chronic, life-threatening autoimmune disease where the immune system attacks healthy cells. There is currently no cure and existing medications only treat the symptoms whereas ImmuPharma's drug candidate has the potential to produce remission of the disease in a substantial proportion of patients.
Based on independent forecasts, the value of ImmuPharma’s Lupus drug is estimated to be "substantial" with peak annual sales forecast to generate in excess of $4 billion.
Severe pain relief (IPP-102199)
ImmuPharma is developing a potential non-addictive compound for relieving moderate to severe pain, such as experienced by cancer sufferers and post-surgical patients. Most existing treatments are derived from the opiate morphine and tend to have serious side effects. ImmuPharma's new treatment is based on met-enkephalin, the body's internal analgesic. IPP-102199 is being developed to have major advantages over morphine such as longer pain relief duration and reduced side effects. The market for chronic opioids in the US currently exceeds $3.5 billion and is growing by more than 10 to 20 per cent a year.
Antibiotic for MRSA and similar highly resistant infections (IPP-203101)
This is a novel antibiotic to counter the effects of MRSA and other severe hospital-acquired, resistant infections which affect some two million people in the US, according to the US Centers for Disease Control and Prevention. ImmuPharma’s drug candidate is targeted at disrupting the membrane potential of MRSA and other bacterial strains. It is hoped this novel approach will reduce their potential to become resistant.