Prima successful in fundraising

Prima Biomed has become the latest biotech company to successfully raise additional funds through a private placement to institutional and professional investors.

"We've had a tremendous response and commitments up to $4.5 million," said CEO Marcus Clark.

Agreements for up to 10 million shares have been placed at a subscription cost of 45 cents. The company was initially seeking around $2 million investment, plus attaching 1 for 2 options which would be exercised before June 2004.

Shareholder approval will be required, Clark noted, but he did not foresee any problems arising from that.

The company recently provided an update on its commercialisation activities, which said that three of Prima Biomed's subsidiaries were in the process of negotiating licensing deals and collaborations with international partners. In addition, Cancer Vac completed a Phase I clinical trial successfully and is planning for a Phase II study next year.

"We're in discussion with potential licensees, we'll have to see how this pans out over the next month," Clark said. "These could be sources of revenue in themselves, so we may not need to continue with revenue raising."

He said the recent developments in Prima's four subsidiary companies demonstrated to investors that the technologies were maturing into deals, validating the companies' approach.

"Going into this I was a bit concerned about the market, but the response has been really good from investors," Clark said. "It's giving us huge momentum to continue growth."