Hatchtech hardly a head-scratcher for investors

Melbourne’s Hatchtech has completed a $12.6 million capital raising to fund phase III trials and the regulatory approval process for its single-dose headlice treatment, DeOvo.

The raise was led by OneVentures Innovation Fund and supported by existing Hatchtech investors including the University of Melbourne, the Queensland Biotechnology Fund and Uniseed. Brisbane-based Blue Sky Alternative Investments participated as one of the company’s new investors.

HatchTech will put the proceeds towards its planned phase III trial and to cover the costs of preparing a New Drug Application with the US FDA, which it expects to file in the second half of next year.

If approved, the company is aiming to launch DeOvo in the US in 1H16.

Hatchtech has also announced some changes to the make-up of its board. Former Acrux (ASX:ACR) CEO Dr Richard Treagus is joining as independent director, while Hatchtech CEO Hugh Alsop will become an executive director. Alsop was appointed Hatchtech CEO in March.

Alsop and Treagus replace Dr John Kurek and Dr Ross Macdonald, who are both retiring from the board.

Clinical and lab trials suggest that DeOvo can kill 100% of live lice and their eggs in a single 10-minute treatment, as opposed to the lengthy repeated regimens required by existing approved products.

The capital raise is the latest in a series of successful fundraising efforts from Australian biotechnology companies in the last month. It follows a $14 million placement from Osprey Medical and an oversubscribed $7 million capital raising from Nexvet Biopharma. Stem cell-based treatment company Regeneus also went public in a $10.5 million IPO.