D-Pharm Ltd. (TASE: DPRM), which is developing a drug for stroke treatment that is in a Phase III clinical trial (the final phase before marketing) aims to raise NIS 16.4 million in a rights offering.
The company's share price closed at NIS 11.90 on the TASE today, giving a market cap of NIS 174 million.
The rights offering will enable D-harm to increase the pace of patient recruitment for its clinical trial and publish interim results by the start of 2012.
The company said that it needs $34 million to complete the entire clinical trial. The company has NIS 35 million in cash and February 2012 is the final date for realizing options that were issued at a price of NIS 15.5 per share. Realizing the options should yield an extra NIS 50 million for the company.
In February 2012, the company will publish the trial interim report, which will provide important information about the chances of success. If the trial is successful then talks are likely to begin with one of the world's major pharmaceutical companies for marketing or licensing cooperation for the product. More cash in the company's coffers will enable D-Pharm to come to such negotiations in a stronger position.
Published by Globes, Israel business news - www.globes-online.com - on July 11, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011