Innate Immunotherapeutics launches $12m IPO

Innate Immunotherapeutics has launched an IPO worth up to $12 million as it seeks to raise funds for a phase IIb trial of secondary progressive multiple sclerosis (SPMS) drug candidate MIS416.

The company has already received commitments worth $5 million, including $3 million from cornerstone investor Australian Ethical Smaller Companies Trust.

The bulk of the funds raised will be put towards the phase IIb efficacy trial of MIS416, due to be held at multiple Australian sites from Q2 2014.

During concluded phase Ib/IIa trials, the drug raised no safety concerns and showed signs of positive effect in most patients treated for three months.

An additional 17 SPMS patients have been treated over the last five years in New Zealand under a compassionate use program, and 14 have reported significant improvements in MS symptoms or quality of life after at least six months of treatment.

Innate Immunotherapeutics formally moved its operations from Auckland to Sydney last month in preparation for the trial, and in response to interest from Australian biotech investors.

In September, the company conducted a placement which was also aimed at raising funds for the phase IIb trial.