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Poolbeg Pharma raises £3.5m in share placement to fund pipeline

Poolbeg Pharma has raised £3.5 million through a share placement to advance its drug development pipeline. The placing was oversubscribed, indicating strong investor demand for the biotech firm's infectious disease and immunology programmes.

  • Poolbeg Pharma raised £3.5 million via a share placement.
  • Funds will be used to progress clinical-stage assets in infectious disease and immunology.
  • The placing was oversubscribed, reflecting investor confidence in the company's pipeline.
  • Poolbeg shares traded at 7.5p on Friday, down 2.6% on the day.

Poolbeg Pharma, the London-listed clinical-stage biopharmaceutical company, has secured £3.5 million through an oversubscribed share placement, the firm announced on Friday. The placing was conducted via an accelerated bookbuild and involved the issue of new ordinary shares to institutional and other investors.

The company stated that the net proceeds will be used to advance its pipeline of drug candidates targeting infectious diseases and immunology. Key programmes include POLB 001 for severe influenza and cancer immunotherapy-induced cytokine release syndrome, as well as POLB 003 for pancreatic cancer.

Chief Executive Officer Jeremy Skillington said in a statement that the strong support from investors reflects confidence in Poolbeg's strategy and the potential of its assets. 'This fundraising positions us well to deliver on key value-inflection points over the coming months,' he added.

The placement comes as the broader biotech sector continues to attract investor interest amid ongoing demand for novel treatments. Poolbeg's shares closed at 7.5p on Friday, down 2.6%, valuing the company at approximately £25 million. The stock has fallen around 15% year-to-date, underperforming the FTSE AIM All-Share Index.

Analysts at Shore Capital, which acted as joint broker on the placing, noted that the funding should allow Poolbeg to reach important clinical milestones without needing to seek further capital in the near term. They maintained a 'buy' recommendation on the stock, though they cautioned that early-stage drug development carries inherent risks.

Why this matters: UK investors in small-cap biotech stocks should note that Poolbeg's successful placing signals continued appetite for specialist healthcare plays on London's junior market, though dilution from new shares may pressure near-term valuations.

What this means for you: What this means for you: If you hold Poolbeg shares or invest in AIM-listed biotechs, the placing dilutes existing holdings but provides cash runway for pipeline progress. The oversubscription suggests institutional confidence in the company's prospects.

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