Danish biotech firm Pharmexa proved surprisingly popular with institutional investors on Wednesday. Within hours of announcing a share issue, it was already fully subscribed and the offering was closed early. The subscription price was fixed at DKK 17 (USD 3) per share, and the gross proceeds are expected to be approx. DKK 60 m (USD 10.5 m), enough to safeguard the company's future until mid-2008.
Pharmexa's share price later dipped significantly on Copenhagen Stock Exchange, the market apparently unimpressed by the fact that the share issue was not accompanied by announcements of anything startlingly new from the company, or that the proceeds were linked to any specific projects. However Pharmexa's MD Jakob Schmidt stressed that many things could happen between now and mid-2008, and alluded to the possibility of a partnership agreement and encouraging clinical results.
Pharmexa's partner search among the big pharma companies centres around three of its development compounds, the cancer vaccine GV1001, an osteoporosis drug, and the vaccine potency enhancer Padre.
Pharmexa A/S is a leading company in the field of active immunotherapy and vaccines for the treatment of cancer, serious chronic and infectious diseases. With operations in Denmark, Norway and the US, Pharmexa employs approx. 100 people and is listed on the Copenhagen Stock Exchange.
The news was reported by national daily newspaper Berlingske Tidende.