Immupharma Strengthens Balance Sheet and Provides Update on the R&D Pipeline
(LSE AIM: IMM - Euronext Growth: ALIMM), has raised £1.5 million through the issue of 15,000,000 shares at 10p through two Subscriptions.
The Subscriptions comprise of £200,000 from the Company’s President and Chief Scientific officer Dr Robert Zimmer (through Luca and Associates AG, a company to which he is connected) and £1.3 million from Lanstead Capital Investors L.P. an institutional investor and substantial shareholder. The Issue Price represents a 6.45% discount to the closing price on 27 March 2020.
The proceeds of the Subscription will be used to fund the expansion of the Company’s R&D programmes and for general working capital purposes.
The subscription by Lanstead follows on from the £4.43 million investment and sharing agreement in February 2016, from which the Company received just over £5.0 million from Lanstead, and the £2.66 million investment in June 2019 which is currently ahead on cumulative settlements to date. The proceeds of the Lanstead Subscription are pursuant to a sharing agreement. The Sharing Agreement entitles the Company to receive back those proceeds on a pro rata monthly basis over a period of 24 months, subject to adjustment upwards or downwards each month depending on the Company's share price at the time. The Sharing Agreement provides the opportunity for the Company to benefit from positive future share price performance.
Commenting, ImmuPharma's Chairman, Tim McCarthy, said: "We are delighted to receive further investment from Lanstead, who remain a long term supporter and significant institutional shareholder in ImmuPharma. We also recognise the further investment from our President and Chief Scientific Officer, Dr Robert Zimmer, who similarly is a significant shareholder in the Company.
"It is important to recognise the continuing support of Lanstead as a long-term shareholder in ImmuPharma, which has been demonstrated since their initial involvement in 2016. They remained committed to maintaining a significant shareholding within the Company into 2018, after the Sharing Agreement was completed in 2017 and again supported the Company with a further investment in 2019.
"We believe that this latest investment from Lanstead is a strong endorsement of ImmuPharma and in support of their own carefully developed investment strategy of only supporting companies and technology platforms which have substantial future accretive opportunities.
"The proceeds from these investments by Dr Zimmer and Lanstead, together with existing cash resources, will support the significant expansion of our R&D pipeline.”
Shares in IMM were just above the placing price at 10.55p in early trading
R&D Pipeline Update
Lupus - Autoimmunity | Lupuzor™ for Lupus and CIDP
The Company’s US collaboration partner, Avion Pharmaceuticals LLC, are fully funding the new optimised international Phase III trial for Lupuzor™ in lupus. Avion has strengthened its team of advisors for the Phase III trial, entering into a collaboration with a leading lupus patient group and the formation of a Board of Key Opinion Leaders from the US and Europe.
The Key Opinion Leaders will assist the Company in agreeing the criteria for the Phase III Lupuzor™ trial in advance to meeting with the Food & Drug Administration (FDA). In consultation with these advisors, a number of key decisions will now be made, and next steps agreed in advance to meeting with the Food & Drug Administration (FDA). Once the Phase III trial has commenced, these advisors assist the Company with recruitment of patients, promotion to steering groups and source potential partners for Lupuzor™ outside of the US.
Chronic Inflammatory Demyelinating Polyneuropathy ("CIDP")
In a number of pre-clinical trials, Lupuzor™ , has proved that it has the potential to also be effective within other auto-immune diseases including Chronic Inflammatory Demyelinating Polyneuropathy ("CIDP"). CIDP could potentially be granted 'Orphan Drug Designation' due to the unmet clinical need and with around 50,000 to 100,000 confirmed cases in the US and Europe, which would provide a fast approval process.
The Company is planning to commence a Proof of Concept study in CIDP patients based on the strong data already gained within the Company's lupus dossier.
Anti-Infectives
The growing resistance to antibiotics and antifungal agents, and more recently the Covid-19 outbreak has highlighted the unpreparedness and susceptibility to more aggressive infectious microorganisms. The World Health Organisation has stated that resistance to antibiotics is one of the biggest threats to global health, costs and mortality.
Despite the obvious threats to the health and wellbeing of the world's population, anti-infectives is a therapy area that attracts one of the lowest R&D spends in the biopharma industry. Trials are generally much shorter for anti-infection versus chronic disease. Therefore the Company believe this is an attractive therapy area for speed to market and lower cost of trials.
Antiviral opportunity
Through its subsidiary UREkA Pharma, the Company has become a partner in a consortium dedicated to the development of novel peptides intended to block the fusion of COVID-19 and other viruses to the target cell. The aim is to apply the results of fundamental research to the development of novel inhibitors of SARS-CoV-2 entry into target cells using the Urelix™ patented technology of UREkA Pharma together with contributions from the other members of the consortium. The strategy is based on inhibiting viral entry, using peptides specific for the viral fusion protein.
Anti-fungal opportunity | 'BioAMP-B'
The Company has recently developed BioAMP-B, a novel peptide-based drug that offers a potential improvement on Amphotericin-B ("Amp-B"). Amp-B is one of the few effective treatments for many serious and life threatening fungal infections such as aspergillosis (lung infection) but has been known the cause serious kidney toxicity in 14-15% of patients. The Company’s BioAMP-B's target profile has a superior safety profile to Ambisome. Sales of Ambisome in 2019 were $407 million. Next step is lead candidate optimisation.
Anti-bacterial opportunity | 'IPP-203101'
The Company’s novel peptide-based antibiotic ,IPP-203101, is for the treatment of MRSA ("methicillin-resistant Staphylococcus aureus" or "superbug") and other severe and hospital acquired multi-resistant infections. IPP-203101 causes bacterial cell death by a two-step mechanism involving interaction with the lipid component of the membrane followed by membrane breakdown. IPP-203101's target profile is to be as efficacious as but with a better safety profile than current drugs. . Next step is lead candidate optimisation.
Metabolism | BioGlucagon
BioGlucagon has been developedmas a potential new rescue therapy for low sugar events in diabetes. Existing glucagon products have poor solubility and are inconvenient with variable dosing due to poor solubility creating risks for patients. BioGlucagon has 100% solubility, can be formulated in pre-filled syringe pens and could be used in insulin pumps. The next step will be to progress towards a bio equivalence study for BioGlucgagon, which if successful could result with a potential market launch date in 2022.
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