CanFite BioPharma aims to raise NIS 50 million
(Israel Business Arena Via Thomson Dialog NewsEdge)Drug development company Can Fite BioPharma Ltd. (TASE:CFBI) published a draft flotation prospectus on Sunday for the raising of NIS 30 million and a further NIS 20 million in a future offering through the exercising of warrants. Founded in 2000 by Professor Pnina Fishman, Can Fite held its IPO in September 2005 and raised $45 million at a value of $170 million. The company has developed an oral drug CF101' for the treatment of rheumatoid arthritis, which is undergoing Phase II clinical trials.
The immediate financing will be raised by way of an issue of twelve-month convertible bonds. Clal Finance Underwriting Ltd, Apex Underwriting Ltd, D.I.M. Risk Management Ltd and Discount Underwriting & Issuing Ltd. are underwriters for the issue.
Can Fite plans to use the proceeds from the flotation to finance Phase II clinical trials for testing efficacy in treating dry eye syndrome, a condition often seen in patients suffering from rheumatoid arthritis. The company will also continue testing of its new compound CF102 for use in cancer therapy in combination with chemotherapeutic drugs as well as further testing of CF101 for treatment of other inflammatory conditions such as psoriasis, osteoarthritis, crohn's Disease and multiple sclerosis.
Can Fite will also plans to launch Phase III trials for CF101 which will entail toxic testing and testing for metabolization efficacy. The drug was primarily developed for treatment of rheumatoid arthritis. It has so far undergone clinical trials in the US, UK and Israel. CF101 is active against a wide variety of autoimmune and cancer diseases, and is able to specifically attack pathological cells without affecting healthy ones. It is also administered orally, which gives it a significant advantage over many other drugs which are administered by IV infusion or injection at much higher costs. The potential market for treatments rheumatoid arthritis is currently estimated at $5 billion and it is expected to continue to grow by an annual rate of 20%.
Published by Globes [online], Israel business news - www.globes.co.il - on May 9, 2006
Copyright of Globes Publisher Itonut (1983) Ltd. 2006
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