EvoGenix completes $A5 million capital raising

Published: Thu 7 Dec 2006 04:19 PM
EvoGenix completes $A5 million capital raising
Antibody therapeutics company EvoGenix Limited (ASX:EGX) today announced the successful completion of a $A5 million capital raising through a share placement to institutional and sophisticated investors.
The share placement is for 10 million shares at an issue price of $0.50 per share.
The placement included investments both from existing shareholders and from a number of other institutional investors with expertise in the biotechnology sector.
EvoGenix CEO and Managing Director Merilyn Sleigh commented that the additional capital will be used primarily to accelerate development of the company’s product pipeline with particular emphasis on anti-cancer antibody drugs under development.
Dr Sleigh noted “EvoGenix has been able to access two very exciting prospects for novel cancer treatments through agreements announced this year with the University of Massachusetts, USA and the US National Institutes of Health. These offer new approaches to treatment of cancers where an effective drug could be expected to achieve more than a billion dollars in annual sales. Our work during the next 12 months will be focused on confirming the effectiveness of these potential treatments in our pre-clinical studies, accelerating products through to the clinical testing phase.”
Lodge Corporate Services Pty Ltd acted as Adviser and Lead Manager for the placement.
Details of the raising
EvoGenix will issue 10 million new shares as a result of the placement. This represents less than 15% of the company’s total issued capital, allowing the issue to proceed under Rule 7.1 of the ASX listing rules without additional shareholder approval. Application for listing of the new shares will be made in the near future.
About EvoGenix
EvoGenix Limited (ASX:EGX) has established leading technology capabilities for creating high value antibody and protein-based therapeutics. The company exploits its capabilities through technology collaborations with partner companies, and by development in-house of a succession of wholly-owned antibody and protein products.
Antibodies are natural proteins designed to attack, block and remove unwanted materials
from the body. Antibodies are usually first made in animals such as mice or rats, and in their initial state are unsuitable for use in patients, because the foreign protein is rapidly rejected by the human immune system.
The EvoGenix technology can convert a research-stage antibody into a high potency therapeutic suitable for long term administration to patients. This is a key value-creating step in antibody development.
EvoGenix is progressively building company value by assembling a portfolio of revenues from technology collaborations using its unique technology capabilities. Multi project collaborations with GlaxoSmithKline and Australia’s CSL Limited have been announced in the past 12 months.
At the same time EvoGenix is advancing its internal product pipeline, with current products aimed at the treatment of osteoporosis, lung cancer, melanoma and respiratory infections. Generally, these will be out-licensed prior to the clinical stage to meet the existing high demand for new biotherapeutic products in the pharmaceutical industry.

Next in Business, Science, and Tech

NZ space sector set to star in Moon mission
By: Ministry of Business Innovation and Employment
The Sky Is The Limit - Air New Zealand To Relaunch 14 International Routes In 16 Days
By: Air New Zealand
Update On Hidden Economy Real Estate Campaign
By: Inland Revenue Department
Entrust Dividend Will Be Welcomed After Another Tough Year
By: Entrust
NZ Economy: Prevailing Headwinds
By: BusinessNZ
Shared Cheese Heritage Should Be Shared Not Stripped
By: NZ Specialist Cheesemakers Assn
View as: DESKTOP | MOBILE © Scoop Media