Synairgen (LON:SNG)  has successfully raised £80m at 175p in a placing which will support final-stage clinical trials for its lead drug in patients with severe coronavirus (COVID-19). 
 
The drug discovery group placed, in aggregate, 45,714,285 shares at the Issue Price of 175p with existing and new institutional and other shareholders at a discount of around 4.1p. 
 
In addition, the company could also receive a further £7.0m from an open offer of stock to investors that did not take part in the placing in which shares were also sold at 175p each. 
 
The net proceeds of the placing will also be used to support its lead drug, SNG001, in other ways such as supporting manufacturing and scale up activities as well as generating further data for SNG001 in order to support further clinical, manufacturing and regulatory activities. 
 
The group said the proceeds would also strengthen its balance sheet and provide certain Directors the right to exercise options and for Synairgen to net settle them on their behalf. 
 
This morning’s raise follows on from a successful fundraise of £14 million earlier in the year which was intended to expedite Phase II clinical trials for SNG001. SNG001 is one of the few drugs that has been recognised by the WHO as a potential therapeutic for COVID-19. 
 
Shares in Synairgen have skyrocketed in value since July, jumping in value by over 450% to open this morning 0.62% lower at 202p following the announcement. 

Commenting on the raise, Richard Marsden, Chief Executive Officer of Synairgen said: 
 
“Having demonstrated the great promise of SNG001 in hospitalised COVID-19 patients earlier this year, we are delighted to have now received the financial support to be able to progress this potential breakthrough treatment in such a critical area of unmet need." 
 
Synairgen’s Phase III clinical trial in patients with severe coronavirus (COVID-19) will commence at some point this quarter, it said, and involve 900 patients in 20 countries. 
 
Synairgen is using a technology within its clinical trial known as interferon beta (IFN-beta), a naturally occurring protein which orchestrates the body’s antiviral responses.  
 
The formulated drug candidate, known as SNG001, is directly delivered to the lungs via an inhaler to treat and/or prevent lower respiratory tract infections caused by the virus. 
 
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