The Mereo BioPharma Group, which is a British company that is trailing 3 of the drugs developed by Novartis, stated that it will be listing on London’s junior AIM market for raising the capital in order to develop the drugs and also to provide itself with more financial flexibility in order to meet the future deals.
The company now plans to purchase drugs that are discovered by the major pharmaceutical companies and then fund and design the later stage clinical trials. It started off last year with a proper backing from Neil Woodford as well as Invesco Perpetual.
Mereo announced on Monday that it had raised approximately 14.9 million pounds in a private placing and the cash investment by Novartis as a means of convertible loan, which is in addition to the 77 million pounds that was raised last year.
The private placing was done at a price of two twenty one pence a share, it stated. The stock will start from the 9th of June.
The CEO, Denise Scots Knight stated that the funding will assist in improving the clinical development of the candidates for treatment for acute chronic obstructive pulmonary disease, brittle bone syndrome and also hypogonadotropic hypogonadism or low testosterone production, which is common among the obese men.
The CEO also stated that the company’s strategy is to start building a diverse portfolio over a period of time and have publicly traded shares, which will give additional flexibility for securing the next set of product candidates that are likely to be primarily sourced from the big and large pharmaceutical companies that are hugely popular across the globe. The company is also very confident about its development and looks ahead with optimism.