Prima secures $10m and institutional support

Prima Biomed (ASX: PRR) announced today it had finalised its $10 million placement to institutional and sophisticated investors.

Among the investors are listed biotech pooled development fund Biotech Capital (ASX: BTC), which has committed to a 4.9 per cent stake in the company, and the Beville group, which is associated with new executive chairman Eugene Kopp. A large overseas institutional investor also participated in the placement.

Kopp said the placement put the company in a secure financial position to fund its core programs for the next two years.

The funding will allow Prima subsidiary CancerVac to complete the Phase II clinical trial for its ovarian cancer vaccine, in addition to submission of an IND for its DCTag technology by another subsidiary, PanVax. R&D activities, including the joint venture with US company Medarex to produce a humanised anti-cancer antibody, will also be supported.

Biotech Capital managing director Harry Karelis said Biotech Capital had looked at the company in some detail a couple of years ago but had not invested at that point. He said the new chairman and executive management structure of the company was a factor in deciding to invest in this placement.

"The longer term prospects for the company are substantial," he told Australian Biotechnology News.

"As the new regime gets out there talking the talk, I'd expect the company to get new shareholders willing to invest."

The placement was managed by Sydney-based brokers Southern Cross Equities and is subject to approval by shareholders at the AGM on November 30, 2004.