Pharmaxis completes capital raising

Pharmaxis (ASX:PXS, Nasdaq:PXSL) has completed its capital raising of AUD$87 million (US$63 million).

In the US, 1.3 million American Depositary Shares (ADSs) were issued to US institutional investors at an issue price of US$24.16 per ADS, while in Australia 19.9 million ordinary shares were issued at AUD$2.20.

Pharmaxis has also been granted 'orphan drug' status in Europe for its product Bronchitol for the treatment of cystic fibrosis. European orphan designation is granted to those products intended for the diagnosis, prevention and treatment of diseases that affect not more than five in 10,000 people in the European Community, or conditions where no current therapy exists.

It entitles Pharmaxis to a range of incentives including a 10-year period of market exclusivity, protocol assistance to optimise drug development in the designated indication, reduction in registration fees and eligibility for grants and initiatives supporting research and development.

Bronichitol also has US FDA orphan drug status for the treatment of cystic fibrosis as well as bronchiectasis.