By Ian Walker
LONDON--Shares of Physiomics PLC (PYC.LN) fell 25% in early
trade Thursday after the company announced a heavily discounted
share placing to raise 270,000 pounds ($407,249).
The Oxford, U.K.-based company, which combines systems biology
with mathematics to develop models that streamline the drug
discovery and development process, has placed 449.9 million new
ordinary shares at 0.06 pence per share, a 25% discount to its
closing share price on Wednesday.
Shares at 0950 GMT were trading 19% lower at 0.07 pence. Earlier
in the session they had fallen as low as 0.06 pence. Shares are
currently down 55% over the past 12 months.
Physiomics said it will use the money for working capital
purposes.
It has recently signed its first contract to develop its lead
service, virtual tumor, with Merck Serono, the biopharmaceutical
division of Merck (MRK.XE). Virtual tumor is used to optimize the
dosing and scheduling of oncology drugs in pre-clinical trials.
Under the contract with Merck, which lasts for 14 months,
scientists of both companies will work together to develop and
calibrate a model that can predict optimal combination partners for
both marketed and pipeline drugs.
At the time of the announcement, on March 3, Physiomics said it
expects to generate revenue from the contract in fiscal years 2015
and 2016 which end June 30. Revenue is expected to match all of
Physiomics sales in fiscal 2014 of GBP267,903, it said.
At June 30, 2014 the company had cash and cash equivalents of
GBP132,358.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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