BioTie TherapiesRaises Capital
Turku - In order to secure financing until the end of 2004, BioTie Therapies Corp. aims to raise about Euro10.5 million of new capital through a new issue pursuant to the shareholders pre-emptive subscription right by the end of June. The issue would secure cover of the self-financed sharing of drug development projects, for which the National Technology Agency (Tekes) granted additional funding of Euro5.9 million as subsidies and loans in April. The funding will be paid - excluding Euro1.4 million of advance loan payments - after Tekes approved the budgets for the proposed projects' costs.
Upon securing funding for its operations, a licensing agreement will come into force, through which the Japanese Seikagaku Corp. will have the exclusive rights to BioTie's VAP-1 antibody against inflam-matory diseases as well as the rights of commercial exploitation of the patents in Japan, Taiwan, Singapore, New Zealand and Australia.
BioTie Therapies has further completed two phase-III studies of Nalmefene, an opioid receptor antagonist, intended for the treatment of alcoholism without psycho-social therapy. It reduced the number of heavy drinking days almost by half. Results from a phase-II study of patients suffering from pathological gambling suggest that Nalmefene also reduces gambling related urges. BioTie is seeking a licensing partner for both programmes.