Biotron to raise $4.1m for BIT225 IND

Biotron (ASX:BIT) has launched a $4.1 million capital raising to help further the clinical development of hepatitis C (HCV) drug candidate BIT225.

The fully underwritten rights issue will be made on a two-for-nine basis at an issue price of $0.08 per share, a 51% discount to the 1-month volume weighted average share price. Shareholders will be able to apply for additional shares on top of their entitlements.

Proceeds from the offer will be used to help complete the phase II trial of BIT225 in HCV genotypes 1 and 3.

The funds will also be used for studies to complete Investigational New Drug filings with the US FDA, including drug-drug interaction studies, pharmacokinetic data modelling and additional laboratory studies.

Biotron recently revealed that all five HCV genotype 3 patients enrolled in an open-label pilot trial of patients co-infected with HIV and HCV had undetectable levels of the virus 12 weeks after completing all treatment.

The trial is evaluating the use of BIT225 in conjunction with interferon and ribavirin (INF/RVB). Three of the enrolled patients withdrew before completing treatment due to intolerance to the INF/RVB regimen.

Biotron (ASX:BIT) shares were trading 16.67% lower at $0.125 as of around 2 pm on Wednesday.