Ardana looking to raise GBP 10 million in a placing

Ardana plc, a specialist in reproductive health, is raising GBP11.0 million in a placing to advance the clinical development programme for EPO1572, which it believes will be the first oral treatment for growth hormone deficiency.

EPO1572 is a secretagogue that stimulates the production of human growth hormone. Currently, the world market for growth hormone replacement therapy is worth around $3 billion. Treatment, principally given to children, involves daily subcutaneous injections, making EPO1572 potentially a much more acceptable therapy.

In addition, Ardana has Phase I data showing EPO1572 can stimulate growth hormone release without affecting other hormone levels, and that unlike injections, growth hormone is produced in pulses, mimicking the natural production cycle.

Following a recent meeting with the US Food and Drug Administration on the design of a clinical trial, Ardana believes it can get early approval of EPO1572 as method for diagnosing human growth hormone deficiency, allowing it to be launched as soon the beginning of 2008. The money raised in the placing will pay for the registration trial.  

Ardana, of Edinburgh, was founded in July 2000 to commercialise research carried out by the UK Medical Research Council (MRC) at its Human Reproductive Sciences Unit. It raised GBP43 million as private company, and a further GBP21 million when it floated on the main market in London in March 2005.

Recognising that venture capital for early stage companies was drying up, Ardana was one of the first biotechs to morph its business model towards speciality pharmaceuticals, as a way of generating revenues to pay for in house R&D programmes. Whilst retaining its focus on reproductive health, the company has bought in a number of drugs and built up a sales force, enabling it to keep more of the future value of its own products.