CeNeS to raise £6.1m in share placing to prepare Phase III trials for its lead pain relief drug
Cambridge-based biotech CeNeS Pharmaceuticals plc (CEN.L) specialising in developing drugs for pain relief said it plans to raise £6.1m through a share placement
The company will use the cash to prepare for Phase III studies of its lead drug M6G (morphine-6-glucuronide) in the US and to carry out clinical trials of its other products.
CeNeS recently announced positive results from the largest ever European Phase III trial of M6G, its lead drug candidate for the treatment of post-operative pain. The trial showed M6G gives equivalent pain relief to the gold standard treatment regimen of morphine and also that M6G gives a clinically relevant reduction in side effects such as nausea, dry retching, vomiting and sedation.
CeNeS now intends to find partners to complete the clinical package that is required for US and European product filings. CeNeS is actively pursuing partners for M6G and maintaining momentum in the planning of the US trials will assist greatly in this process.
CEO Neil Clark (pictured) said: “We are delighted with the support from existing and new investors … and are now well funded as we continue our partnering discussions.”
CeNeS has other clinical programmes not currently top priority. CNS 5161, a novel drug for the treatment of intractable chronic pain, has been successfully tested in Phase IIa trials in neuropathic pain and is partnered for clinical development purposes with Ergomed.
CeNeS and Ergomed have developed a clinical development plan to test CNS 5161 in two Phase II studies in cancer pain and neuropathic pain respectively.
CeNeS is also completing the pre-clinical package for its novel short-acting sedative CNS 7056 and plans to file an IND application and carry out proof of concept Phase I trials.
CeNeS’ directors believe the further successful development of M6G and CNS 5161 will significantly add to the value of the Group’s product pipeline.
They believe development of its pre-clinical products will provide CeNeS with a broader platform from which to build a focused, sustainable and profitable business. In addition, a stronger balance sheet will enable them to negotiate from a better position should merger and acquisition opportunities arise and will also help in negotiations with potential licensing partners.
The Company expects it will shortly complete a licensing deal for one of its products. The terms of the deal are in a standard format and include milestones and royalties.
The company’s share price slid 16.5% on the news in a generally bad day for stock markets. It closed at 3.55p to value the company at just above £17m.
27th July 2007
