MGC Pharmaceuticals has announced it has completed a £5.5m capital raise which will go toward progressing its clinical pipeline.
European-based biopharma company specialising in the production of phytomedicines, MGC Pharmaceuticals, says the raise was supported by a mix of institutional and family office investors from the UK and USA, comprising both new and existing shareholders.
Since listing on the LSE in February, the company has been focused on developing its clinical pipeline and taking steps towards market authorisation for its products. Specifically, it has been working on achieving Emergency Use Authorisation for CimetrA, a nanoparticle micellar formulation that has demonstrated to be an effective treatment for mild and severe cases of COVID-19 in preclinical and clinical trials.
Co-founder and managing director, Roby Zomer, commented: “This latest fundraise will provide MGC Pharma the capital required to continue the excellent progress we have made this year with our clinical pipeline.
“In the last few months, we have made real progress on advancing CimetrA towards Emergency Use Authorisation in key territories, all while achieving record revenue figures on our existing products, including ArtemiC. With the completion of our CimetrA Production Facility in Malta now awaiting its fit-out, we will soon be in a position to meet the expected demand for this product when we achieve Emergency Use Approval in key territories and really make a difference to the treatment of COVID-19 patients.
“By looking for Emergency Use Approval of CimetrA in the USA (with our partner AMC) and India, two of the largest pharmaceutical markets in the world, amongst others, we are showing our belief in the product, and our ambition for MGC Pharma.
“The benefits of CimetrA are being shown in trials across the world. As more variants emerge, we believe that CimetrA will be able to treat the pathophysiological mechanism of the disease. It is more important than ever that we accelerate the Emergency Use Authorisation process in territories across the globe, to make sure that all patients have access to CimetrA. Everyone at MGC Pharma is ready to build on the excellent work that has been done so far, and to deliver for our shareholders and for patients globally.”
To achieve Emergency Use Authorisation for CimetrA, MGC Pharma has received approval for a dosage study by the Rambam Medical Center’s Ethics Committee in Israel. Funds from the placing will go to completing the study, recruiting patients in territories across the globe. In conjunction with this, MGC Pharma will also be looking to fund Emergency Use Authorisation applications and their associated testing requirements for other territories in Central and Eastern Europe, and Central Asia.
Additionally, the proceeds will also be used for further clinical trials in the USA of the medicine CannEpil, MGC Pharma’s phytocannabinoid-derived IMP designed to treat drug-resistant epilepsy,
The placement shares will be issued at 2 pence each, representing a 13 per cent discount from the closing price on 29 November 2021, and once issued will represent approximately 10 per cent of MGC Pharma’s ordinary shares.
Turner Pope acted as sole and exclusive lead manager and bookrunner for the placing into the London market.
[activecampaign form=31]
