Peplin raises $3.5m, plans to broaden pipeline

Queensland-based Peplin Biotech has raised $AUD3.5 million before expenses through the placement of five million shares at $AUD0.70 to domestic and international institutional investors.

Company chair Cherrell Hirst said that while the milestone payments from collaborator Allergan would underpin Peplin's cash flow, the additional funding would open up the opportunity to broaden and accelerate the company's drug pipeline and technology platform.

CEO and managing director Garry Redlich said the placement met the median expectations of the company.

"We were always very open about what the market would do... we didn't want massive dilutions," he said. "We're very pleased to have an increasing valuation."

Wilson HTM and ABN AMRO Morgans acted as joint placement agents for the shares. At the time of writing Peplin's share price (ASX: PEP) was trading at $AUD0.75.