Destiny Pharma, a clinical stage biotechnology company focused on the development of novel anti-microbial drugs, which address the global problem of anti-microbial resistance (AMR), is pleased to announce the admission (“Admission”) of its ordinary shares (“Ordinary Shares”) to trading on AIM, a market operated by London Stock Exchange plc, from 4 September 2017 under the ticker “DEST” (ISIN GB00BDHSP575).
The Company has raised gross proceeds of £15.3 million through a placing (“Placing”) with existing and new institutional and other investors of 9,733,770 Ordinary Shares at a placing price of 157 pence per Ordinary Share (“Placing Price”). The Company is very pleased to have raised an additional £1.8 million to the £13.5 million published in the admission document on 29 August due to increased institutional demand. Pursuant to the Placing a total of 41,651,770 Ordinary Shares will be in issue immediately following Admission, giving a market capitalisation of approximately £65.4 million at the Placing Price.
Destiny Pharma has also entered into a binding framework agreement detailing a collaboration with a wholly-owned subsidiary of China Medical System Holdings Ltd (“CMS”) to enable the development and commercialisation of the Company’s assets in China and certain other Asian countries, excluding Japan (see separate release announced today). A&B (HK) Company Ltd, a company with a controlling shareholder in common with CMS, has invested £3 million in the Placing.
Neil Clark, Chief Executive Officer of Destiny Pharma, commented:
“The successful placing and admission of our shares to trading on AIM are major milestones for Destiny Pharma. The funds raised will primarily be used to progress our lead drug candidate, XF-73, through an important Phase IIb clinical trial in the prevention of post-surgical Staphylococcus aureus infections (including MRSA) over the next two years. If successful, XF-73 will then be ready for Phase III clinical development which will be a major value inflection point.
“XF-73 could be the first drug to be specifically labelled for a new US FDA sanctioned indication, namely the prevention of post-surgical infections; a market we believe to be worth a billion dollars in the US alone and growing.
“We would like to thank our new and existing shareholders for their support and we look forward to updating the market with our progress as we continue to advance XF-73 and our proprietary XF drug development platform.”
Highlights of Destiny Pharma
· A clinical stage biotechnology company – lead asset (XF-73) targets post-surgical bacterial infections in hospitals
· XF drugs have shown in studies to be safe, fast acting and have a unique low/no resistance profile
· XF-73 has multiple drivers for adoption in an area of global unmet medical need, with a potentially “fast track” route to regulatory approval in the US market
· XF-73 is significantly de-risked – five successful Phase I/IIa clinical trials completed to date showing rapid antibacterial action combined with evidence of a no/low resistance profile; next major clinical trial is Phase IIb in the US
· XF-73 is part of the Company’s proprietary, anti-microbial drug platform “XF Drugs” with a new mechanism of rapid action – Destiny Pharma also has several earlier stage programmes
· Destiny Pharma has market exclusivity, including robust IP protection that potentially extends into 2030
· Clearly defined value creation opportunity, significant addressable markets, including blockbuster potential for XF-73’s lead indication
· £15.3 million gross proceeds will be used primarily to advance XF-73 to complete a Phase IIb clinical trial
The admission document and supplementary admission document, along with the information required by AIM Rule 26, are available on the Company’s website.
Cantor Fitzgerald Europe (“Cantor Fitzgerald”), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as nominated adviser and broker to the Company.
Regional Framework Development and Commercialisation Agreement with China Medical Systems
Destiny Pharma (AIM: DEST), a clinical stage biotechnology company focused on the development of novel anti-microbial drugs, which address the global problem of anti-microbial resistance (AMR) , is pleased to announce it has entered into a framework development and commercialisation collaboration agreement with China Medical System Holdings Ltd (“CMS”) (867:HK).
Destiny Pharma has entered into a binding framework agreement detailing the collaboration with a wholly-owned subsidiary of CMS who will get full rights in China and certain other Asian countries (excluding Japan) to enable the development and commercialisation of Destiny Pharma’s pipeline in the region. Under the collaboration, CMS will make a £3 million equity investment on the finalisation of the detailed agreement under which the parties will agree to work together in the further research and development of the Destiny Pharma anti-infective portfolio. It is planned that the parties will coordinate and share data from their respective studies and Destiny Pharma will benefit from the investment CMS will make in the assets’ development in China. Once formalised, Destiny Pharma will also be able to receive future milestones based on the achievement of sales targets by CMS and may also make a manufacturing margin on any product Destiny Pharma supplies. In addition, A&B (HK) Company Ltd (“A&B”), a company with a controlling shareholder in common with CMS, has invested £3 million in a placing of new ordinary shares in Destiny Pharma, announced today, that raised gross proceeds of £15.3m (see separate announcement).
Neil Clark, Chief Executive Officer of Destiny Pharma, commented:
“We are pleased to announce this framework agreement with a large, expert company such as China Medical Systems. Such collaborations are in line with our strategy and confirm the potential in our pipeline. We anticipate that this partnership will accelerate the development of assets from our proprietary XF drug platform in China and certain other Asian markets whilst permitting Destiny Pharma to retain its focus on its key target markets in the US and the EU.”
Mr Lam Kong, Chairman and Chief Executive Officer of CMS, said:
“We are pleased at the opportunity to work with Destiny Pharma, coordinating and sharing the data that we both generate. Our equity investment in the Company underpins our commitment to this partnership. We look forward to collaborating closely.”
