Manchester drug discovery company bids to raise £11m from new shares
Manchester pharmaceutical specialist C4X Discovery today (September 18) announced plans to raise up to £10m through the placing of new shares with existing and new institutional investors.
And in order to provide qualifying shareholders with an opportunity to participate in the fundraise, subject to the successful closing of the placing, the company proposes to make an open offer to raise additional gross proceeds of up to £1m.
C4XD, based on Portland Street, aims to become the world’s most productive drug discovery engine by exploiting cutting edge technologies to design and create best-in-class small-molecule candidates targeting a range of high value therapeutic areas.
It is advancing its in-house pipeline that is primarily focused on the high value therapeutic areas of inflammation, neurodegeneration and cancer with a number of new drug candidates identified, and further progress made towards pre-clinical licensing discussions.
The company is also focusing on areas such as addiction and diabetes.
It recently signed a licensing agreement with Indivior for a pre-clinical addiction programme worth up to £224.4m.
The net proceeds of the share placing will be used to support the execution of C4XD’s strategy of becoming the world’s most productive, self-sustaining drug discovery engine by strengthening its balance sheet as partnering discussions and strategic collaborations progress, expanding its commercial capability and supporting working capital during the expansion of its pipeline portfolio.
Commenting on the proposed placing and open offer, C4XD chief executive Clive Dix, said: “The completion of our deal with Indivior earlier this year further validated our business model and today’s fundraising provides a strong platform for further licensing of our best-in-class small molecule candidates to the pharmaceutical industry.
“Our technology platform, which includes state-of-the-art proprietary technologies Taxonomy3®, Conformetrix and Molplex, are delivering a high value pipeline in important disease areas.
“Demand from potential partners for early stage assets remains high and we look forward to continuing to drive value from revenue-generating deals and building a sustainable drug discovery company.”
C4XD was founded as a spin-out from the University of Manchester.
It has a highly experienced management team and board who have delivered significant value creation within the healthcare sector, historically, and have enabled C4XD to reach multiple value inflexion points since its flotation.
