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Neurotech International (ASX:NTI) raises $9m for paediatric clinical trials

ASX News, Health Care
ASX:NTI      MCAP $75.28M
28 October 2022 13:04 (AEST)

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Neurotech International (NTI) has tapped investors for $9 million to fund its paediatric clinical trials program.

Emerging today from a trading halt, the company revealed it had received binding commitments from institutional, professional and sophisticated investors for a placement comprising 90 million new shares at 10 cents per share.

This issue price represents a 23 per cent discount to the company’s last closing price on October 25 of 13 cents.

The raise follows the company’s release of data from its 20-week phase one/two clinical trial, which showed its NTI164 drug for children with Autism Spectrum Disorder (ASD) had a “very acceptable” safety and toxicity profile over 20 weeks.

According to Executive Director Thomas Duthy, the trial data showed a further strong and durable clinical improvement in these “difficult-to-treat children”.

“NTI164 was able to manage and treat the complex symptoms of ASD,” Dr Duthy said.

“Consequently, we are confident that NTI164 has the potential to be used in the clinical setting in conjunction with behavioural (non-drug) therapies to manage complex neurological symptoms in these children.”

The data will support the progression of the drug into a larger double-blind, placebo-controlled phase two/three trial to validate the initial results.

Neurotech has submitted a Human Research Ethics Committee (HREC) application as part of a “clinical commitment” to further develop NTI164 in ASD.

The approval of this application and the commencement of patient recruitment are expected this quarter.

Neurotech also plans to use the funds for multiple phase one and two trials in paediatric autoimmune neuropsychiatric disorders and cerebral palsy as part of its paediatric clinical trials program.

Additionally, the funds are set towards lead-in pre-clinical work associated with the company’s planned submissions to the US Food and Drug Administration.

NTI shares dropped 19.23 per cent to trade at 10.5 cents at 12:58 pm AEDT.

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