Realm Therapeutics Announces $26 Million PIPE Financing


Realm Therapeutics plc (AIM: RLM), a clinical stage biopharmaceutical company focused on leveraging its proprietary immunomodulatory technology, is pleased to announce today that it has successfully secured funding commitments to raise gross proceeds of $26 million through a private placement in the United States and the United Kingdom to existing and new investors, including healthcare specialist funds OrbiMed, BVF Partners LP, RA Capital Management, Abingworth BioEquities Master Fund Ltd and Polar Capital. The PIPE is conditional upon approval of the Company's shareholders, to whom it is being presented at a General Meeting expected to be held in London on October 9, 2017, and other customary closing conditions.

Net proceeds of the PIPE will be used primarily to advance the Company's drug development programs and for general corporate purposes including:

  • further advancing the Company's PR022 atopic dermatitis clinical programme beyond Phase IIa, but results of initial trials in PR022 and PR013 will drive prioritisation among these two lead indications;
  • conducting a Phase II proof of concept study in Acne Vulgaris, with PR023 a topical formulation in early development; and
  • further evaluating the Company's high concentration hypochlorous acid formulations for application in potential pipeline candidates, including psoriasis and dry eye.

The PIPE provides for the issuance of approximately 66.4 million units at a price of 29 pence per unit, with each unit comprising one ordinary share and one warrant to subscribe for 0.4 ordinary shares. Each warrant carries an exercise price per share of 58 pence and a term of 2.5 years.

MTS Securities, LLC is acting as the US placement agent and N+1 Singer is acting as the UK broker and nominated adviser in connection with the PIPE.

About Realm Therapeutics

Realm Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel immunomodulatory therapies to protect and improve the lives of adults and children. The Company has initiated drug development programs, based on its proprietary hypochlorous acid technology at high concentrations. The Company believes its formulations have novel immunomodulatory activity with potential application for the treatment of diseases in a number of therapeutic areas, including dermatology and ophthalmology.

About Atopic Dermatitis (AD)

AD, a serious form of eczema, is a chronic, relapsing, inflammatory disease characterised by itchy, inflamed skin, which poses a significant burden on patients' quality of life and on the overall health care system. Patients with AD have impaired function of their skin barrier, and this, combined with skin damage as a result of the intense itching and scratching associated with the disease, makes them at risk for secondary infections due to colonisation with pathogenic bacteria (particularly Staphylococcus aureus) and changes in the skin microbiome. AD affects up to 20% of children and up to 3% of adults and prevalence numbers continue to increase.

About Allergic Conjunctivitis (AC)

AC is an inflammatory disease of the conjunctiva, the membrane covering the white part of the eye, caused primarily from a reaction to an allergen such as pollen, or pet dander, or other environmental antigens, and affects up to 40% of the United States population and up to 20% of the population of Europe and Japan, including children. This inflammation results in redness, acute itching, tearing and associated nasal symptoms. Approximately 30% of AC patients do not adequately respond to the current standard of care.

About Acne Vulgaris

Acne vulgaris is the most common chronic skin condition in the U.S., affecting approximately 45 million people, or 14% of the population. The disease can range from mild to severe cystic acne and is associated with significant physical and psychosocial effects on quality of life, including permanent scarring, depression and anxiety. The two main factors involved in the development of acne are clogged pores and/or the presence of bacteria, leading to irritation, lesions and inflammation.

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