Phosphagenics raising $19.3m for TPM trials

Phosphagenics (ASX:POH) is conducting a $19.3 million capital raising to help fund clinical trials for its TPM/opioid pain patch products.

The company has arranged to conduct a two-tranche $16.3 million placement and has launched a $3 million share purchase plan. The second tranche of the placement will require shareholder approval.

The funds will be used to help fund a US phase II trial of TPM/Oxymorphone in the first half of 2015 and an Australian phase II trial of TPM/Oxycodone.

Phosphagenics CEO Harry Rosen said the capital raising comes at a time when the company is focusing on the commercialisation of several of its lead development programs.

“While we have unquestionably shown that our technology provides enhanced delivery solutions across a wide range of products, we now need to translate this to commercial outcomes,” he said.

“We have recently strengthened our business development capacity in the US to assist in this process.”

A former Phosphagenics employee pleaded guilty last month to charges of defrauding the company out of an alleged $4.6 million. Former CEO Dr Esra Ogru has also been implicated and will appear in court next month.

Phosphagenics (ASX:POH) shares were trading 1.18% lower at $0.084 as of around 2 pm on Monday.