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(Sharecast News) - Shares in biopharmaceutical group Poolbeg Pharma sank on Tuesday after the company revealed wider losses for the 2024 financial year as it raised nearly 5m in an oversubscribed placing as it progresses two key clinical trials.
Poolbeg, which is yet to start generating revenues, said it ended the year with a cash balance of 7.8m, down from 12.2m at the end of 2023, while losses widened to 5.8m from 3.9m.
The company earlier on Tuesday revealed plans to raise at least 4.1m, but confirmed around lunchtime that had conditionally raised 4.72m due to strong investor demand.
The fundraising comprised a placing of 134.8m shares, raising 3.37m, and a subscription of 53.8m, raising 1.35m. A bookbuild offer remains open until the end of play on Thursday, with the potential to raise an additional 100,000.
The funds will be used to provide the company financial runway into 2027, as well as going towards the Phase 2a trial of POLB 001, its oral preventative therapy for cancer immunotherapy-induced Cytokine Release Syndrome. The first patient in the trial is expected to be dosed in the second half of 2025, with topline data due in the second half of 2026.
"Not only is there a potential market opportunity of more than US$10bn, but we believe POLB 001 could greatly enhance the uptake of cancer immunotherapy treatments by preventing CRS," said chief executive Jeremy Skillington.
Proceeds will also go towards a proof-of-concept trial for oral GLP-1 weight-loss drug which, together with POLB 001, represent "major potential value inflection points for the company", Skillington said.
The stock was down 12.1% at 2.51p by 1247 BST.
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