Immupharma set to join AIM
admission to the Alternative Investments Market (AIM), in a move
that will give the group the resources necessary to finance initial
clinical trials on ImmuPharma's lead drug candidates for severe
pain and MRSA-related infections.
At the forefront of ImmuPharma's drug pipeline is its candidate that targets Lupus, a disease for which there is currently no cure or specific treatment. By 2010 there will be an estimated 1.4 million patients diagnosed with Lupus in the seven key markets.
The proceeds of the placing, together with certain grants, are expected to fund the phase I trial and a phase II study for the Lupus candidate, which is expected to give an early indication of efficacy.
The AIM admission will be affected by ImmuPharma's proposed takeover of AIM-listed General Industries.Under the proposal General Industries has undertaken to make a share exchange offer for ImmuPharma's entire equity capital which, on successful completion, will result in the existing shareholders of ImmuPharma taking a controlling interest in General Industries.
On successful completion of the acquisition and an accompanying placing with institutional and private investors, there will be approximately 67.8 million shares in issue. This means that, at the placing price of 42.5p a share, the company would be capitalised at some £28.8 million, (€23.4 million).
The placing is expected to raise a minimum of £2.05 million in cash which, when combined with General Industries' existing cash resources, will give the enlarged group the resources necessary to finance initial clinical trials on its lead drug candidates for pain, MRSA and Lupus.
Additional terms of the takeover would require the resignation of existing directors of General Industries and the current directors of ImmuPharma elected in their place.
The new board would then seek a change of name from General Industries to ImmuPharma plc.
"Over the last decade the big companies in the pharmaceutical industry have become increasingly interested in licensing novel blockbuster drugs from small research and development-based companies," said Dimitri Dimitriou, ImmuPharma chief executive officer.
Robert Zimmer, president and chief scientific officer commented further: "The company's proprietary technologies have the potential to increase the possibility of peptides being considered as drug candidates. This would represent a major advance in the development of effective medicines."
Lupus is a chronic, potentially life-threatening autoimmune disease. An estimated one million people worldwide have been diagnosed with this inflammatory disease, which attacks multiple organs such as the skin, joints, kidneys, blood cells, heart and lungs.
There is currently no cure or specific treatment and Immupharma's drug candidate, IPP-201101, has a mechanism of action aimed at modulating the body's immune system so it does not attack healthy cells without causing adverse side effects. It has the potential to halt the progression of the disease in a substantial proportion of patients.
According to a recent Datamonitor report, the currently unique ImmuPharma drug candidate, IPP-201101, has an "achievable" peak market share of 50 per cent.
The report also suggests that the drug could sell at a similar cost to interferon, the multiple sclerosis treatment - around $10,000 a year per patient.
Immupharma have stated that due to the nature of the disease and lack of treatments, the US Food and Drug Administration may permit a fast track development and approval process for Phase III once the Phase II study is finished in the first quarter of 2007. If approved, the drug could be available on the market as early as 2010.
