Phosphagenics aims to raise $11.25m

Melbourne's Phosphagenics (ASX:POH, AIM:PSG) is planning to raise AUD$11.25 million via a share placement to fund its core R&D program.

"We plan to use the funds to accelerate our research of our pharmaceutical and nutraceutical drugs including transdermal technology," said Phosphagenics president and executive director Harry Rosen. "Last week we announced the signing of an agreement with ALZA Corp -- it is a validation of our science."

Phosphagenics has allocated approximately 46.875 million fully paid ordinary shares through the placement which will be issued to overseas and domestic institutions and sophisticated investors at $0.24 per share. The new shares are expected to commence trading on the ASX and the AIM on or around 17 November.

Transdermal drug delivery is the administration of drugs using a gel or patch applied to the skin.

"We have commenced registration for phase II trials on the transdermal delivery of morphine and we expect to have results in the first quarter of 2006," Rosen said. "We will commence clinical trials of a TPM-01 insulin product also in the first quarter of 2006 and there are several other candidates."

The placement was lead managed and arranged in Australia by BBY and in the UK by Collins Stewart.