Medlab raises $24m to support commercialisation of new cancer drug

Medlab raises $24m to support commercialisation of new cancer drug

It's only been a few weeks since Medlab Clinical (ASX: MDC) became the ASX's newest cannabis supplier, and now the company has completed a heavily over-subscribed share placement to raise $24 million.

Settlement is expected to occur next week for the 26.6 million MDC shares and the new funds are set to bolster the company's commercial offering as well as its research and development (R&D) department.

Medlab CEO Sean Hall said the fresh capital will primarily benefit the company's trademarked NanaBis product, a buccal spray produced in Melbourne which is designed to alleviate cancer pain and provide an alternative to opioid treatment.

"The support shown for the placement has been extremely pleasing and appreciated," says Hall.

"These funds help put the company in a strong financial position and allows Medlab to accelerate the commercialisation by some 12 to 18 months ahead of schedule of NanaBis under the government's Special Access Scheme."

Hall said the funds will also help Medlab accelerate its R&D in areas including obesity, diabetes and depression.

When it comes to NanaBis, Hall said earlier this month that Medlab will continue to build the confidence of the medical fraternity in prescribing the product.

The placement was co-managed by Bell Potter Securities and APP Securities.

MDC shares have jumped 9.8 per cent at around (9:39am AEST) to trade at $1.11.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

 
Finexia’s Childcare Income Fund secures ‘very strong’ rating from Foresight Analytics & Ratings
Partner Content
Private credit specialist Finexia Financial Group (ASX: FNX) has secured a “very...
Finexia
Advertisement

Related Stories

"10x in six months": Brisbane startup Xrecruiter opens Melbourne office

"10x in six months": Brisbane startup Xrecruiter opens Melbourne office

A Brisbane-headquartered startup that helps recruiters strike it ou...

Luxury online dropshipper Cettire sees 88pc sales growth, profit fails to keep pace

Luxury online dropshipper Cettire sees 88pc sales growth, profit fails to keep pace

Luxury online retail marketplace and dropshipping company Cettire (...

Netwealth founder to leave executive role as funds rise $6.7 billion in three months

Netwealth founder to leave executive role as funds rise $6.7 billion in three months

One of the largest wealth managers on the ASX reported a $6.7 billi...

Law firm profits surge as survey reveals robust client demand and margins

Law firm profits surge as survey reveals robust client demand and margins

Four in every five Australian law firms are reporting profit margin...