Proximagen Raises £50M Through Placing To Acquire, Develop Drug Programs

Proximagen has announced that it has conditionally placed 35714286 new ordinary shares of 1p each at a price of 140 pence per share, to raise gross proceeds of £50 million. The net proceeds of the Placing will provide the company with capital to acquire and in-licence drug development programs, and to further develop these programs to commercialisation.

£50 million were raised from new and existing shareholders, including participation from licensing partner Upsher-Smith Laboratories. It is said to be one of the largest biotech fundraisings in the UK in the past 10 years.

The proceeds will be used to acquire and in-licence drug development programs. A number of drug development programs presenting acquisition and licensing opportunities have already been identified and are under negotiation, said the company.

The proceeds of the Placing will be utilised over a two to three year period and the funds further strengthen the company’s existing cash balance, bringing it to more than £57 million.