Actinogen Medical makes bold A$11.1m move to boost Alzheimer’s drug trial

Actinogen Medical has raised 11.1 million AUD in a significant capital raise led by its CEO, Dr. Steven Gourlay, who personally invested 1 million AUD. The funds are aimed at accelerating the pivotal Phase 2b/3 trial for its promising Alzheimer’s treatment, Xanamem. This decisive move aims to fast-track patient enrolment and bring the potential breakthrough drug closer to market approval in the US and globally.

CEO Backs the Company with a 1 Million AUD Personal Investment

Actinogen Medical, listed on the Australian Securities Exchange, has successfully secured 8.1 million AUD through a share placement with existing shareholders and new institutional investors, alongside a 3.0 million AUD share purchase plan (SPP) offer for current shareholders. In a show of confidence, CEO Dr. Steven Gourlay committed 1 million AUD of his own money, while other directors added 130,000 AUD. These investments, pending shareholder approval, reflect strong internal confidence in the company’s future prospects and its flagship product, Xanamem.

Accelerated Enrolment for XanaMIA Alzheimer’s Trial

The capital raised will be crucial in completing the enrolment of 220 patients for the 36-week XanaMIA Phase 2b/3 Alzheimer’s trial in Australia and the US. The trial, targeting patients with biomarker-positive Alzheimer’s disease, aims to provide pivotal data for regulatory approval. Interim results from the first 100 participants are expected by mid-2025, with final results anticipated by mid-2026. If successful, this trial could be one of the two required for global marketing approval, potentially positioning Xanamem as a leading treatment for Alzheimer’s.

Details of the Capital Raise

The 8.1 million AUD placement involved issuing shares at $0.03 each, along with three options for every four shares purchased. These options have an exercise price of $0.05 and expire on 30 September 2027. The SPP also offers similar terms, enabling eligible shareholders to invest up to 30,000 AUD. The substantial oversubscription in this placement highlights strong investor confidence in Actinogen’s innovative approach to Alzheimer’s treatment.

Strategic Use of Funds for Clinical Trials

Actinogen plans to use the funds to expand clinical sites and ensure full enrolment for the XanaMIA trial. According to Dr. Gourlay, “the new funding ensures we can continuously enrol patients at an expanded number of clinical sites in Australia and the US to meet our timelines.” The company is also exploring potential co-development and regional commercial partnerships, aiming to leverage the positive momentum generated by the successful capital raise.

Expert Opinion: A High-Stakes Bet in the Neuroscience Market

Actinogen’s bold move underscores its commitment to advancing Alzheimer’s treatment options at a time when the neuroscience market is ripe with opportunity. The company’s focus on cortisol regulation with Xanamem represents a novel approach compared to traditional amyloid-targeting therapies. This differentiation could make Actinogen a significant player in a multi-billion-dollar market if it successfully navigates the complex path of drug development and regulatory approvals.

The Road Ahead: Challenges and Potential

While the capital raise provides a solid runway until mid-2026, the road ahead is challenging. Actinogen must demonstrate robust clinical efficacy in the upcoming Phase 2b/3 trials to meet FDA and global regulatory standards. However, the substantial personal investment from the CEO and the oversubscription in the capital raise suggest a high level of confidence from both inside and outside the company.

Actinogen Medical’s 11.1 million AUD capital raise is a strategic move to fast-track the development of its Alzheimer’s treatment, Xanamem. With the backing of its CEO and strong investor confidence, the company is poised to make significant strides in a high-risk, high-reward segment of the pharmaceutical market.