Biopharmaceutical developer D-Pharm has raised $15 million in a rights issue to its shareholders. Clal Biotechnology Industries Ltd. (TASE: CBI), which already holds 41% in D-Pharm invested a further $10 million through the rights issue.
The fund raising is seen as preceding an IPO on the Tel Aviv Stock Exchange for which D-pharm has already submitted a draft prospectus.
The aim of the current rights issue is to provide funding to reach interim results in its latest clinical trial to receive approval from the US Food and Drugs Administration (FDA) for D-Pharm's stroke treatment.
The cost of the trial is between $20-30 million, which is the total sum that D-Pharm hopes to raise. In addition to CBI other major shareholders in D-Pharm are Pitango Venture Capital and Israel Health Care Ventures.
IDB Holding Corp. (TASE:IDBH) unit CBI's share rose 5.89% today to NIS 7.94.
Published by Globes [online], Israel business news - www.globes-online.com - on July 7, 2009
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