LONDON (ShareCast) - Shares in drug developer Immupharma were higher after confirmation it had raised £3.4m at a premium price to help fund Phase III trials of its lead product candidate Lupuzor, a potential treatment for lupus.
The new shares were issued, principally from long-time investor Aviva, at a price of 53p per share, roughly a 3.9% premium to Monday's closing price.

The funds will significantly swell the company's cash reserves, which at the half year stood at £5.2m, as it engages in negotiations with a potential partner.

On 30 September Immupharma said it was "gearing up" and was close to starting the Phase III trials for Lupuzor with the help of a partner that currently remains unnamed while licensing discussions are finalised.

House broker Panmure Gordon said the new funds ensure that the company remains better capitalised to stand its end of the bargain if a co-development partnership is the preferred route.

"It would seem preparations for the start of this final stage of development are gathering pace and further news can be expected in coming weeks," said analyst Savvas Neophytou.

The company had announced on Monday that it had raised €400,000 of non-dilutive funding to help with the recently announced addition of a new "game changing" technology platform Urelix, which has an initial focus in diabetes.

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