Destiny Pharma (DEST ) has conditionally raised total gross proceeds £6.45m from a placing, subscription and open offer to accelerate the development of its late-stage pipeline assets.
In early March 2022, Destiny informed investors of its plans to raise up to £7m as it continues to progress towards Phase 3 trials in its two lead clinical assets, NTCD-M3 and XF-73 Nasal.
The company said the proceeds will also enable it to finalise its regulatory plans, whilst also strengthening its balance sheet as it progresses with partnering discussions for the assets.
Neil Clark, CEO of Destiny Pharma, commented: “We are very pleased with the results of the fundraising and the renewed support from our existing as well as new shareholders which will enable Destiny Pharma to accelerate the development of its two, late-stage pipeline assets.”
The Company has described its NTCD‐M3 assets as “a potential game-changer” for the prevention of C. difficile infection (CDI) recurrence, which is currently the leading cause of hospital-acquired infection in the US with a potential peak sales opportunity of $0.5 billion.
The Group’s XF-73 nasal gel, which has recently completed a positive Phase 2b clinical trial, is targeting the prevention of post-surgical staphylococcal hospital infections including MRSA.
Destiny has acknowledged that this represents a $1bn market opportunity in the US alone.
Last month, Destiny received positive scientific advice from the EMA stating that a ‘ simple, microbiological primary endpoint’ is acceptable for European approval of its XF-73 nasal gel.
The EMA stated that the XF-73 gel will measure the percentage of patients demonstrating decolonisation to a level of eradication. This is consistent with the primary endpoint used in the previous successful Phase 2b clinical study that reported ‘outstanding’ results in 2021.
Destiny Pharma said the EMA’s positive advice ‘identifies a clear route through European approval of XF-73 Nasal gel as a ground-breaking hospital infection prevention product.’
Addressing shareholders, Clark added: “The funds will enable us to finalise regulatory plans for the Phase III trials of these two lead key assets, complete the manufacturing scale up for NTCD-M3 and strengthen the balance sheet as we progress partnering discussions, and advance Destiny Pharma’s strategy to build a world-leading anti‐infectives company.”
In a research note published in early March, analysts at Equity Development acknowledged the ‘sensible’ decision of Destiny’s Board to proceed with the fundraising amid the ongoing ‘risk-off’ reaction to the war in Ukraine, and the potential for equity markets to suffer further.
Its fair value stood at £187.9m or 314p per share, with analysts noting that the dilution of the full fundraising and the final amount raised net of costs “will undoubtedly have an effect.”
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