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Proteomics taps investors for $3M to fund kidney disease predictor

Health Care
ASX:PIQ      MCAP $142.6M
15 November 2019 15:45 (AEST)

Investors have touted confidence in Proteomics with a heavily oversubscribed share placement raising $3 million.

The medi-tech company is now set to issue 10.8 million shares at a nicely-discounted 28 cents apiece — a 13.9 per cent premium on Proteomics’ 20-day volume-weighted average share price.

Proteomics plans to use the new cash to fund the commercialisation of its PromarkerD diagnostic device and to develop its analytical services and intellectual property (IP).

PromarkerD is Proteomics’ diabetic kidney disease prediction test which, according to the company, is able to predict the disease up to four years in advance. This allows sufferers to take the preemptive steps necessary to minimise kidney damage and have a better quality of life.

With today’s funding, one of the highlights for spending is Proteomics’ attempt to secure a reimbursement code for PromarkerD in the U.S.

While the company didn’t provide details regarding the specifics of the code, reimbursement codes generally mean there will be a form of government subsidy for the commercialisation of the product. This new code would go hand-in-hand with the CE Mark certification received for the product earlier this week.

Proteomics International Managing Director Dr Richard Lipscombe said the company is in a strong position to tackle the new calendar year.

“The funds will be used to not only advance the commercialisation of PromarkerD, but to upgrade our facilities and accelerate the development of existing and potentially new IP,” Dr Richard said.

He said Proteomics is expecting 2020 to be a “transformative” year for the company.

The company announced to the ASX today that the successful capital raising means it has a strong balance sheet for any potential future licensing and even partnering discussions for PromarkerD.

Proteomics shares are trading 4.35 per cent down in early afternoon trade, currently worth 33 cents each in a $26.74 million market cap.

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