Diurnal Group (AIM:DNL) plans to raise around £10m at the Issue Price of 60 pence per Placing Share to develop two drug products and prepare them for market opportunities in the US, and to progress its early-stage drug pipeline.
The pharmaceutical firm targeting patient needs in chronic hormonal diseases said it will look to secure £8m through a conditional placing and a further £2m through an open offer.
The funds will be used to develop Diurnal’s native oral testosterone formulation, DITEST™, which includes completion of a Phase 1 multiple ascending dose study in the United States.
Similarly, the proceeds will also be used to commence Phase 3 preparation activities for its Chronocort® product in the US and preparation for both Alkindi® and Chronocort® in Japan.
Diurnal also plans to use the proceeds in order to progress the early-stage pipeline into proof-of-principle clinical studies, including the group’s modified-release T3 programme.
Shares in Diurnal Group have more than doubled since July 2020 and were trading above the placing price of 60.0p at 62.5p following the announcement.
"Diurnal has continued to make excellent progress in 2020 despite the challenging global conditions. We have partnered Alkindi® Sprinkle with Eton Pharmaceuticals in the US and subsequently received approval from the US FDA,” said Martin Whitaker, CEO of Diurnal.
Diurnal Group told investors that it is funded to profitability for the Company's late-stage cortisol replacement franchise which is represented by its products, Alkindi and Chronocort.
Its Alkindi® Sprinkle product, a replacement therapy in paediatric patients with adrenocortical insufficiency, was approved by the US FDA in September 2020. Its launch is anticipated for Q4 2020, with its US market potential is believed to be around $100m.
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