Scandinavian biotech looking to drum up cash
Norwegian cancer therapeutics company Algeta ASA has announced plans to raise EUR27.7m (NOK 245m) through the private placement of 22.3 million new shares in a move managed by ABG Sundal Collier and DnB NOR Markets. Directed at existing shareholders as well as selected new institutional and professional investors, the offering was led by international investment group Abingworth LLP. Completion of the offering is subject to approval at an extraordinary general meeting that the firm is planning to hold on March 4th (2009). The company says the money will be spent to complete its current Phase III clinical trial with Alpharadin, a treatment for skeletal metastases of prostate cancer origin. Algeta CEO Andrew Kay said that in addition, his firm “intend(s) to broaden the overall clinical development program of Alpharadin so that we can demonstrate its potential benefit for patients with other cancers that metastasize to bone.” Alpharadin is an alpha-emitting pharmaceutical based on radium-223.