OncoZenge raises $329K to push cancer-pain drug through Phase III

What's the deal? Swedish biotech OncoZengeDealroom has a profile for this one. Try Dealroom → has raised US$398.9K (≈$329,000) through a directed share issue to existing shareholders Life Science Invest FundDealroom has a profile for this one. Try Dealroom → 1 ApS (LSIF) and Selandia Alpha Invest A/S. The board issued 1,100,000 new shares at US$0.36 each, with LSIF subscribing for US$362.6K and Selandia for the remaining US$36.3K.

What's the endgame? OncoZenge is developing BupiZenge, a treatment for oral pain in conditions such as oral mucositis from cancer therapy. The proceeds will fund its pivotal BEAM-Pain Phase III trial and preparations for a marketing authorisation application.

Why now? The raise follows a recent rights issue and comes as the Phase III study runs on track. The board chose a directed issue over a rights issue because the small size would have made transaction costs disproportionate and exposed the company to market risk.

Who's backing it? Both investors are existing shareholders deepening their stakes to become larger strategic owners. LSIF, which led the round, specialises in life science investments.

"With the successful outcome of the rights issue and the Phase III study being on track, LSIF is happy to further support OncoZenge," said Jan Poulsen, chief executive officer of Life Science Invest Fund. He added that over time the firm sees "BupiZenge potentially becoming the standard of care for oral pain in conditions where current options are insufficient."

The signal: A quick re-raise so soon after a rights issue points to insiders doubling down ahead of a decisive stretch. Poulsen called the coming 12 months "highly interesting" for OncoZenge as it heads into negotiations and its pivotal trial.

Read more: ae.marketscreener.com

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