ChemGenex announced that it has successfully completed a private financing deal to raise A$10 million, or $7.1 million. A separate rights issue offering is expected to raise another A$7.4 million, or $5.27 million.
The company says that it will use the money, which could total A$17 million, or $12.1 million, to enable clinical development, regulatory filings, precommercialization and partnering discussions, and marketing of omacetaxine.
The compound is in Phase III development for the treatment of chronic myelogenous leukemia (CML) patients who have failed imatinib therapy and who have the T315I point mutation. ChemGenex is also testing the drug in a Phase II trial in CML patients who have failed multiple TKI therapies and a Phase II study in the acute form of the disease.
With regard to the A$10 million placement, the company says that shareholders GBS Venture Partners, Merck Serono, and Orbis Funds Management made substantial contributions in purchasing the 23 million ordinary shares of ChemGenex stock at A$0.43 per share. The additional rights issue offering will allow eligible shareholders to acquire one new share for every 14 held, priced at $0.43 per share.