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  • Biopharmaceutical company Opthea (OPT) receives binding commitments for a US$90 million (A$127 million) two-tranche placement to institutional investors at $1.15 per share
  • The clinical-stage healthcare stock has also secured up to US$170 million in non-dilutive financing from global investor Carlyle and Abingworth to advance its lead drug OPT-302
  • Opthea will work with Carlyle and Abingworth’s new company, Launch Therapeutics, to progress clinical trials for wet age-related macular degeneration
  • The company expects to be fully funded through phase three topline data and pre-commercial activities and retains full worldwide commercial rights to OPT-302
  • Opthea shares end the day 9.35 per cent in the red to close at $1.26 each

Opthea (OPT) has received binding commitments for a two-tranche placement to raise up to approximately US$90 million (A$127 million).

Under the first tranche, the clinical-stage biopharmaceutical company will issue 52.8 million shares to institutional investors to raise US$42.5 million.

The second tranche, which is subject to shareholder approval, will issue another 59 million shares to raise US$47.5 million. Shareholder approval will be sought at a general meeting which is scheduled for September 26.

Each share will be issued at $1.15 which marks a 12.6 per cent discount to the 10-day volume-weighted average price as of August 10.

“This well supported placement has seen a high level of demand from existing and new institutional investors, including large global and US-based funds,” OPT CEO and Managing Director Dr Megan Baldwin said.

In addition to the placement, Opthea will launch a share purchase plan to raise up to a further US$5 million.

Eligible shareholders may apply for up to $30,000 worth of new shares at the same price as the placement

Also announced today, Opthea entered into a non-dilutive financing arrangement with global investment firm Carlyle and its life sciences franchise, Abingworth, for up to US$170 million.

A total of US$50 million will be paid shortly after Opthea receives the funds from the first tranche of the placement. The rest will be funded in two additional tranches.

The capital raise and financing agreement are aimed at advancing phase three clinical trials and pre commercialisation activities of Opthea’s novel therapeutic drug, OPT-302, for wet age-related macular degeneration (wet AMD).

“This successful equity raising in conjunction with the large non-dilutive financing from funds managed by Carlyle and Abingworth, in collaboration with Launch Tx, represents a tremendous achievement for Opthea,” Dr Baldwin added.

“Together, these financings further validate our strategy to develop OPT-302 as a differentiated therapeutic with the potential to improve patient outcomes in retinal diseases including wet age-related macular degeneration.”

Opthea shares ended the day 9.35 per cent in the red to close at $1.26 each.

OPT by the numbers
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