Circadian closes $17.4m capital raising

Biologics drug developer Circadian Technologies (ASX:CIR) has completed a $17.4 million capital raising to help bring lead molecule OPT-302 into clinical trials for eye disease wet AMD.

The company has closed a $12.8 million placement tranche after receiving shareholder approval at the company’s AGM last month.

This followed a $1.2 million placement that did not require shareholder approval and a $3.4 million rights issue. While the rights issue was 53% subscribed, the offer was fully underwritten by Bell Potter Securities.

Circadian CEO Dr Megan Baldwin told Australian Life Scientist that this was the company’s largest capital raising to date, representing more than twice its market cap.

“We feel that we have reached an important milestone for Circadian. The successful capital raising allows us to advance OPT-302 for the treatment of wet AMD through Phase 1 and Phase IIa clinical studies,” she said.

“The fundraising will support key activities to achieve these milestones, including the manufacture of clinical grade drug product, preclinical toxicology and supporting activities and the clinical program.”

Wet AMD (age-related macular degeneration) is the leading cause of blindness in the western world and represents a significant unmet medical need. It typically affects individuals aged 50 or over.

While existing treatments target the vascular endothelial growth factor A (VEGF-A) protein, OPT-302 targets VEGF-C and VEF-D. Inhibiting both proteins simultaneously has the potential to improve treatment outcomes.

“We are excited about the potential of OPT-302 for wet AMD and other eye diseases, which is based on strong preclinical data and endorsed by the addition to our share register of new institutional specialist healthcare investors from around the world,” Circadian chairwoman Dr Dominique Fisher said.

Circadian Technologies (ASX:CIR) shares were trading 11.76% lower at $0.15 as of around noon on Monday.