Shield Therapeutics Seeks $27.4 Million for U.S. Expansion
Pharmaceutical company Shield Therapeutics aims to raise $27.4 million to expand its operations in the United States and launch its iron-deficiency medication, Accrufer. The company's shares fell by 16% in response to this news.
Troy D. Hanson
September 28, 2023
Shield Therapeutics, a pharmaceutical company, has announced its plans to raise up to $27.4 million in order to accelerate its commercial activities in the United States. As a result of this news, the company's shares fell by 16% during Thursday's trading.
Plans for Fundraising
Shield Therapeutics intends to raise approximately £6.1 million ($7.4 million) through a combination of subscription, placing, and a separate retail offer. The issue price for the shares has been set at 8.0 pence each, which represents an 18% discount compared to the closing price on Wednesday.
Additionally, the London-listed company has secured a $20 million senior secured debt facility from SWK, a life-science specialty finance company.
Utilization of Proceeds
The funds raised will be used to accelerate the launch of Shield Therapeutics' iron-deficiency medication Accrufer in the U.S. The company aims to increase the net sale price of the product and allocate funds towards working capital, including inventories and receivables build-up. Furthermore, a portion of the proceeds will be used to repay $5.7 million on an existing loan from major shareholder AOP.
Shield Therapeutics also released its financial results for the six-month period ending June 30. During this period, the company's pretax loss decreased to GBP11.8 million from GBP14.7 million the previous year. Additionally, revenue increased to GBP4.3 million from GBP2.6 million.
The company estimates that Accrufer prescriptions for 2023 will range between 100,000 and 130,000, with approximately 28,000 prescriptions expected in the third quarter alone. This represents a substantial 80% growth compared to the second quarter. Shield Therapeutics anticipates further growth in net product revenue from the U.S. market in the second half of the year, building upon the strong momentum observed in the first half.