Phosphagenics raises $3 million in oversubscribed SPP

Transdermal drug delivery company Phosphagenics (ASX:POH) has raised $3 million in a heavily oversubscribed share purchase plan.

The Victorian biotech will put the proceeds towards its activities commercialising drug delivery applications using its Targeted Penetration Matrix (TPM) technology.

The capital raising follows a $24.1 million placement to institutional investors in October.

CEO Dr Esra Ogru said Phosphagenics had received applications worth over $14 million over the duration of the share purchase plan.

“This follows on from the heavily oversubscribed placement where most of the institutions and sophisticated investors received only a 20-30% allocation of applications,” she said.

The allocations will accordingly be scaled back significantly, and capped at around 71,000 shares per applicant.

Ogru said the placement and SPP will give Phosphagenics the funds it needs to “steer our lead pharmaceutical program through pivotal trials.”

Phosphagenics' lead product in clinical trials is an oxycodone matrix system for chronic pain relief.

Earlier this month, the company signed a licensing deal for another TPM treatment, TPM/diclofenac. The agreement with Mumbai's Themis Medicare is an exclusive for the Indian market.

Diclofenac is a non-steriodal anti-inflammatory drug used in topical formulations, including Voltaren Emulgel.

Themis has committed to launching an over-the-counter TPM/diclofenac product within 12 months. Under the terms of the deal, Phosphagenics will received an undisclosed upfront fee and double-digit royalty payments.

Phosphagenics (ASX:POH) shares rose 6.06% in Tuesday's trading to $0.175.