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Destiny Pharma PLC on Monday proposed going private to pursue funding opportunities after failing to secure a licensing partner. The Brighton, England-based clinical phase biotechnology company is focused on developing novel anti-infectives. Destiny Pharma shares dropped 73% to 2.26 pence each in London on Monday morning. After first floating in 2017 on the AIM stock exchange in London, the company has been seeking a licensing partner for its XF-73 post-surgical nasal gel. ‘I continue to believe that XF-73 Nasal could be a highly differentiated drug for patients to prevent post-surgical site infections. XF-73 Nasal has substantial market potential and represents an attractive commercial proposition,’ said Chief Executive Officer Chris Tovey. Destiny has progressed the development of XF-73 and designed an ‘efficient’ phase 3 clinical development programme. However, after much deliberation and conversations with potential partners, the board views the likelihood of the company reaching an appropriate licensing deal in the near term as ‘very unlikely’. As is the ability to raise sufficient capital from public markets to advance the programme in their opinion. Chair Nigel Rudd said: ‘To date a deal has not been forthcoming...[the review] has identified that a larger pool of capital may be available to Destiny Pharma as a private company and therefore, the board has concluded that de-listing from AIM and re-registering as a private company is a necessary step to provide Destiny Pharma with a realistic chance of securing the capital required.’ Considering the company’s limited cash resources of £2.9 million as of June 30, it is at risk of liquidation, Destiny Pharma said. Whilst operating as a private company is viewed as the most favourable option by management, they stressed there can be no guarantee funding can be secured. A general meeting to approve the cancellation will be held on July 31. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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