Medivir raises €30.8 million in a private placement

Medivir AB has raised €30.8 million in a private placement of 2,250,000 shares, bringing in some thirty international institutional investors as new shareholders in the Huddinge, Denmark-based company.

The money will be used to strengthen Medivir’s R&D, allowing it to advance existing anti-infectives projects further towards commercialisation and enabling it to negotiate joint ventures where it can retain a greater share of the value than in out-licensing deals.

Medivir has announced plans for the placing in March, but its ability to close the round rests on positive Phase IIb results of its lead product TMC435, a protease inhibitor for treating Hepatitis C infections. The product, which is partnered with a Johnson & Johnson subsidiary, Tibotec Pharmaceuticals, is due to enter Phase III trials early in 2011.

Ron Long, CEO of Medivir, said, “We are very pleased with the strong support we have received from prominent international investors and welcome them as shareholders. This successful transaction not only strengthens Medivir’s financial position but also broadens the awareness and shareholder base outside of the Nordic region. From this strong financial position we will be able to realise best value from our R&D pipeline, particularly TMC435.”