Preclinical Australian biotechnology company Nyrada (ASX:NYR) has announced it has received commitments to raise $11 million in capital it will use to support the development of its small molecule drugs to treat cardiovascular and neurological diseases.
The company said it has received the commitments via a two tranche placement to sophisticated and professional investors through the issue of 42,307,692 new Chess Depositary Interests (CDIs) at a price of $0.26 per.
It said the placement commitments exceeded the initial target by approximately $1 million with “strong support from both existing and new shareholders, including institutional investors and Nyrada Directors.”
Nyrada said the proceeds will be used to fully fund a phase one clinical trial of its cholesterol-lowering and brain injury drug candidates as well as repayment of the company’s Noxopharm loan. The additional funds raised will enable further proof-of-concept studies evaluating existing drug candidates in additional therapeutic areas.
Nyrada is currently developing an oral small molecule PCSK9inhibitor drug that is being developed for use with statin drugs lower LDL-cholesterol. It is also developing an intravenous and intranasal drug (NYX-1010 compound) to help people who sustain a traumatic brain injury or suffer a stroke.
According to CEO James Bonnar, “Nyrada’s outlook is extremely positive, with significant progress being made in both our key drug development programs, accompanied by encouraging preclinical results. We are also seeing increased industry interest in our Brain Injury Program, following our recently announced collaboration with the Walter Reed Army Institute of Research and UNSW.
“This financing will fund our planned entry into Phase 1 human trials for both our promising drug candidates in the Cholesterol-Lowering and Brain Injury programs. We look forward to keeping investors informed of our progress. I would like to thank our existing shareholders for their continued support and welcome our new investors to the register.”