Nuformix PLC (LSE:NFX) has raised £1.65mln via a subscription agreement with Lanstead Capital, an investment firm that backs small- and mid-cap growth companies.
The proceeds will be invested in further research and development work on Nuformix’s drug candidates NXP002 and NXP004. Specifically, the cash injection will allow the group to make the former ‘phase 1-ready’. It will also fund ‘business development activities’ with potential licensees for assets.
“I am delighted by the confidence shown by Lanstead in the future prospects of the company’s products,” said chairman Dr Alastair Riddell.
Nuformix is a specialist at repurposing existing treatments for alternative uses. NXP002 is an inhaled form of tranilast, an anti-allergic drug that Nuformix is developing to tackle idiopathic pulmonary fibrosis. NXP004 is a riff on an unnamed drug that will be used in oncology.
“Both products address large market opportunities. Importantly, this [the fundraise] enables us to hire experienced business development expertise to build on our licensing opportunities for these products to pharmaceutical companies,” explained Riddell.
The funds will be received in instalments over the next 20 months, which the company said should allow it to “benefit from positive future share price performance”.
In a separate announcement covering the drug developer’s results for the half-year to September 30, it confirmed that it expects readout for the final study in the data package for NXP002 early next year. This will cover the durability of the pharmacodynamic response of the drug.
In the same announcement, Nuformix said it posted a loss for the period of £499,022, while the net assets of the business were worth £5.25mln.
This year so far it has signed a licensing agreement for its other asset, NXP001, for oncology indications and made a patent application for NXP004.
“We have achieved this with very prudent use of funds ensuring the Company is on a firm financial footing for the foreseeable future,” said chief executive, Dr Anne Brindley, who is leaving the company.
“Although regretfully I am moving on from Nuformix, I remain very optimistic that Nuformix has assets of value that the group can advance to further develop the company and I wish the board and the company much success in these endeavours.”