Neuren raises $6.4m in share placement

Auckland biopharma Neuren Pharmaceuticals (ASX: NEU) has raised AUD$6.36 million to fund the acceleration of the clinical trial program for Glypromate and NNZ-2566.

"We are moving into phase III clinical trials for Glypromate next year," said CEO David Clarke. "We are also moving our molecules for chronic disease more quickly than we originally planned. They have gone a lot better than we thought and we have decided to move them towards commercialisation much faster."

Neuren is currently undertaking its phase IIa pharmacokinetics and safety trial of Glypromate in its first indication as a protection from neurocognitive disturbance following coronary artery bypass grafting surgery (CABG) at multiple sites in Australia and New Zealand. The trials are due for completion at the end of 2005 with the results expected before the end of the first quarter 2006. The phase III trial is scheduled to start next year and will take place in sites in the US, Australia, New Zealand and the UK.

The capital will also be used for the phase I trial of NNZ-2566 in brain-trauma patients and to advance oral formulations of NNZ-2566 and the diketopiperazine NNZ-2591, and for ongoing working capital.

"We are currently evaluating NNZ-2591 for a number of progressive disorders including Parkinson's and are yet to determine a disease target," said Dr Mike Bickerdike, head of pre-clinical development at Neuren.

The capital was raised through the private placement of 12 million fully paid ordinary shares institutions and sophisticated investors at $0.53 per share. It was significantly oversubscribed.

The placement was co-managed by Taylor Collison and Patersons Securities.

At time of writing Neuren shares were trading at $0.60.