Share placement
The UK botanicals specialist Phytopharm plc overcame the adverse market conditions to raise £8.6 million in a placing and open offer. The issue price of 22 per share was at a 6.4 per cent discount.
The money gives the company the means to advance the phase II development of its two lead drugs, Cogane for treating Parkinson’s disease and Myogane for motor neurone disease. Both are based on traditional herbal remedies.
Phytopharm found favour with investors when other UK biotechs have failed to raise money because it has the prospect of a significant royalty stream starting to flow in 2009. The consumer products giant Unilever is due to launch a range of slimming foods that incorporate an appetite suppressant licensed from Phytopharm.
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