Cheshire biotech TheraCryf raises £1.05m to advance addiction treatment into clinical trials

AIM listed biotech TheraCryf is raising £1.05m to complete development work on its lead addiction treatment and secure a commercial partner.

The Cheshire-based firm is placing 416,388,888 shares and issuing 166,944,440 subscription shares to existing and new investors at an issue price of 0.18 pence per share.

The company is developing an Orexin-1 antagonist for addiction and other neuropsychiatric disorders.

Dr Huw Jones, chief executive of TheraCryf, said: “We have made excellent progress in advancing our lead orexin-1 antagonist programme towards the clinic. The clinic-enabling programme remains on schedule, with GMP manufacturing completed and all key development milestones achieved.”

He added: “Following incoming expressions of interest in our neuropsychiatry assets and positive feedback from our partnering outreach programme, the use of proceeds will be focused on completing the clinic enabling programme for the Company’s Ox-1 addiction asset, with the aim of securing a partnering/out-licensing deal to support the future costs of the programme.”

The company says its preclinical development is ahead of plan and it has filed a process patent that, if approved, would extend commercial protection until 2046.

The company says it has identified an accelerated pathway to obtain approval for Phase 1 clinical trials in Australia. Australian clinical trial data is widely accepted by potential partners and major regulatory authorities including the US Food and Drug Administration and the European Medicines Agency.

The fundraising extends the company’s cash runway to the end of the first quarter of 2027.

The company remains on track to obtain approval for Phase 1 clinical trials by the end of 2026.

Dr Alastair Smith, chairman of TheraCryf, said: “The Board believes this fundraising comes at an important point in TheraCryf’s development. With the lead programme approaching first-in-human studies and multiple value-creating milestones ahead, the additional capital provides the financial flexibility to execute our strategy of partnering our assets to manage the costs of development, whilst hitting the near term milestone of approval for a Phase 1 study for the lead asset to enhance deal value.”

Turner Pope is acting as joint broker and lead bookrunner and Singer Capital Markets is acting as nominated adviser and joint broker.

A general meeting to approve the fundraising will be held on 7 September.