4D pharma, an AIM listed pharmaceutical company based in Leeds, aims to raise at least £18 million via a share placing.
The company, which develops live biotherapeutic products, is issuing 36 million new ordinary shares at 50p per share with new and existing investors.
4D Pharma has exercised its right to cause MSD (the trading name of US pharma company, Merck) to purchase £3.8 million of ordinary shares as part of a research collaboration and option to license agreement signed between both companies in October 2019.
The net proceeds of the fundraising, coupled with the company’s existing resources, are expected to support its ongoing clinical studies in irritable bowel syndrome (IBS) and oncology.
It will also enable 4D Pharma to continue to fund its operations to at least two clinical study readouts, as well as for general corporate purposes.
“4D pharma is pleased to launch this funding round – its first since 2015 and in challenging market conditions for developers of new therapeutics – with strong support from existing and new investors, including our partner MSD and other US investors in addition to those in the UK,” said Duncan Peyton, CEO of 4D Pharma.
“This funding will enable us to reach important milestone data points in two clinical studies which we believe will represent material value inflection points as positive data, if generated, will provide strong further validation of our approach to developing live biotherapeutics.”