Metabolic, Biota in successful share issues

By Graeme O'Neill
Thursday, 30 October, 2003

Two of Melbourne's leading biotechs, Metabolic Pharmaceuticals (ASX:BBP) and Biota Holdings (ASX:BTA) have both announced successful share issues.

Metabolic announced its share issue had raised more than AUD$6.1 million, giving it current cash reserves of $19 million, free of any borrowings.

The Metabolic purchase offer involved 5,525,833 shares at an issue price of $1.11.

Anti-viral drug developer Biota trumped Metabolic's figure by announcing its share-purchase offer to shareholders had raised $8.1 million. More than 2100 shareholders -- 14 per cent of the company's list -- took up 16.2 million new shares at 52c each.

Metabolic says the funds raised by its offer will be applied to the company's drug development pipeline.

The company says it now has the funds to complete its 300-patient Phase IIb clinical trial of its anti-obesity molecule, AOD9604. Positive results will allow an early start to Phase III studies.

Biota says the new allotment will increase its issued capital to approximately 96.9 million shares.

CEO Peter Molloy described the subscription rate as "exceptional by industry standards", and said it demonstrated "real confidence in Biota's growth plans and direction".