Cambridge-based Acacia Pharma Group has raised €27 million through a heavily over-subscribed accelerated bookbuild to fast-track commercialisation of certain functions.
The UK business, which also has operations in the US in Indianapolis, is a commercial stage biopharmaceutical company focused on developing and commercialising novel products to improve the care of patients undergoing serious medical treatments such as surgery, invasive procedures, or chemotherapy.
It targeted a minimum raise of €20m but said at the outset of the exercise that this could increase subject to demand.
As previously reported by Business Weekly, the company has seen early positive market reception to the US launch of BARHEMSYS®. To date, approximately 90 per cent of hospitals that have reviewed BARHEMSYS® have placed the drug on their lists of medicines resulting in 90 accounts across the US where the product is currently available on formulary.
CEO Mike Bolinder says: “We are very pleased with the rapid and successful completion of this placing which will provide us with the financial resources to support the continued launch and roll out of BARHEMSYS® and BYFAVO™ in the US.
“As we reported when announcing the placing of new shares, early progress in gaining formulary access for BARHEMSYS® has been very promising, exceeding our expectations and comparing very favourably with recent comparable US hospital product launches.
“Gaining formulary acceptance is a crucial step to driving sales longer term, and we are delighted with the very positive early market reception to the US launch of BARHEMSYS®.
“We would like to thank our existing and new shareholders for their support and look forward to providing a further update on our progress at the time of our full year results in late March.”
The net proceeds of the now €27m placing will partly meet sales force and marketing costs relating to BARHEMSYS® and BYFAVO™ – including brand development and engagement with key opinion leaders, healthcare professionals and medical conference and speaker programs.
It will also help Acacia continue implementing post-approval research and development commitments including paediatric studies for BARHEMSYS® and BYFAVO™ and a renal study for BARHEMSYS®.
Some of the money will be deployed to satisfy interest and principal payments under existing loan agreements and the remainder for general corporate purposes relating to ongoing commercialisation activities.
The new shares are expected to be admitted to Euronext Brussels on February 23.
In a concurrent move triggered by Brexit, Acacia Pharma has changed its home Member State to Belgium. Its Cambridge base is at The Officers’ Mess in Duxford.