BioScience Managers: Cynata Secures $15m Placement Led By $10m from Healthcare Investor BioScience Managers to Expand Development Pipeline

MELBOURNE, Australia, Dec. 11, 2020 (GLOBE NEWSWIRE) -- Cynata Therapeutics Limited (ASX: "CYP", "Cynata", or the "Company"), a clinical-stage biotechnology company specialising in cell therapeutics, is pleased to announce a successful $15 million placement ("Placement"), led by a $10m investment from experienced healthcare investor BioScience Managers through the BioScience Managers Translation Fund I (BMTFI). BMTFI has a mandate to invest in Australian based innovative healthcare technology and this investment will allow Cynata to significantly expand its clinical development pipeline and scale their operations in Australia. The Placement is being undertaken at an offer price of $0.70 for each new share and will be followed by a 1 for 15 non-renounceable entitlement offer at the same offer price as the Placement.The Company's Cymerus mesenchymal stem cells (MSCs) will be developed for three new, additional indications; idiopathic pulmonary fibrosis (IPF), renal transplantation and diabetic foot ulcers (DFU). Further information on Cynata's clinical development pipeline, new indications and the Capital Raising are set out in the company's Investor Presentation.Key highlights:Preparations underway to expand Cynata's clinical development pipeline to include idiopathic pulmonary fibrosis, renal transplantation and diabetic foot ulcersAdditional clinical trials to build on solid foundation from studies in relevant pre-clinical disease models and driven by significant unmet medical needs and promising commercial opportunitiesA$15m institutional placement to existing and new investors at $0.70 per new share, led by A$10m from healthcare investor BioScience Managers via the BMTFIA 1 for 15 non-renounceable pro-rata entitlement offer to eligible shareholders to raise up to approximately A$5.5m will follow the PlacementProceeds raised to primarily fund the expansion of Cynata's clinical development pipeline, enhance process development and progress regulatory strategy for commercialisation Dr. Ross Macdonald, Cynata's CEO and MD, said:"The endorsement from BioScience Managers, an experienced and highly successful healthcare investor, in Cynata's core Cymerus technology and the broad potential of our clinical pipeline provides great validation of our platform. The capital secured will enable a logical and significant expansion of our clinical development into new indications, essentially doubling the size of our clinical pipeline. The additional indications of IPF, renal transplantation and DFU were chosen based on the promising results of multiple pre-clinical studies and highly attractive opportunities, in which our Cymerus MSCs have the potential to significantly improve patient outcomes and to provide new standards of care in these challenging settings. We are encouraged by the confidence in our strategy demonstrated by BioScience Managers, existing shareholders and new investors. Additionally, we are pleased to provide an entitlement offer to eligible shareholders on the same terms as the institutional and sophisticated investors. We look forward to initiating the planned studies in the near term and building on the significant progress made to date with the development of our Cymerus platform technology."Expanding the clinical development pipeline Cynata has carefully selected additional target indications for further clinical development, following a comprehensive scientific, clinical and commercial review. The target indications, including IPF, renal transplantation and DFU, represent a combined market opportunity in excess of A$20bn p.a.1,2,3. Key preparation activities are now underway to advance clinical programs in these high priority target indications including (but not limited to): trial design, regulatory consultation, endpoint selection, key opinion leader engagements and clinical site selection. The Company will continue to develop its existing clinical product pipeline in addition to these new targets and will continue to drive its partnering strategy. Further background information on the new target indications is provided below. Idiopathic Pulmonary Fibrosis (IPF)IPF is an incurable disease of unknown cause, which results in extensive scarring (or fibrosis) of the lungs. When first diagnosed, lung damage is often advanced and invariably progresses to respiratory failure with only 20% to 30% of patients surviving five years after diagnosis4. Treatment of IPF represents a significant unmet medical need, with existing therapies having limited effects on disease ...Full story available on Benzinga.com