Boston, MA, 04/09/2014 (usastockreport) – Prana Biotechnology Limited (ADR) (NASDAQ:PRAN) announces issue of ordinary shares to carry out its business proceeds. The firm has decided to issue 59.17 million ordinary shares for a consideration of a $16.38 million. The amount generated will be used to carry out the research programs. It will also fulfill the need of working capital and will support the current clinical development.
The time of announcement
The news of issuing ordinary shares came at a crucial time, when the company declared the “top line results of Phase 2 IMAGINE trial of PBT2 in Alzheimer’s disease”. Prana Biotechnology Limited (ADR) (NASDAQ:PRAN)’s stocks plunged when the company announced that its drug, which is under the research process to treat Alzheimer disease have not shown significant results in a mid-stage study. Beta-amyloid plaques are responsible for the disease development and the experiment drug failed to show the expected reduction in the plaques levels in the brain. The test results were compared with placebo in patients with the slightest symptoms of Alzheimer.
The need of funds
All these results have raised a concern about the drug’s future. The problem is that the drug failed to have any positive impact on brain metabolic activity. It failed to improve cognition in the study. So now it has become crucial for the company to start the research from a new angle. It will not be easy for a company. It will require the funds to conduct a significant research. At this point, it will be tough for the company to find a partner for the experiment drug.
The research need
It is not just Prana Biotechnology Limited (ADR) (NASDAQ:PRAN) that is making attempts to find out the drug for Alzheimer treatment. Many other big Pharma companies are striving hard to find the drugs that can slow the development of the disease. But till this time no one has managed to get the success. The company is optimistic about the future tests. If the company gets success in its tests, then it can get big returns as Alzheimer affects a large number of people in the United States. So the issue of ordinary shares at this moment seems a wise decision.