Alterity Therapeutics has secured A$40 million in funding through a successful placement to institutional and sophisticated investors, marking a significant advancement in their neurodegenerative disease treatment program. The capital raise, managed by MST Financial Services, attracted strong support from both domestic and international institutional investors.
The placement, conducted at A$0.011 per share, represents an 8.3% discount to the company's last ASX closing price. The funding structure includes two tranches: an initial A$12.8 million raise through the issuance of 1.2 billion new shares, followed by a second tranche of A$27.2 million through 2.5 billion shares, subject to shareholder approval.
Promising Clinical Results Drive Investment
The funding announcement follows recent positive topline results from the ATH434-201 Phase 2 clinical trial. The study revealed significant therapeutic potential for ATH434 in treating Multiple System Atrophy (MSA), a rare and rapidly progressive neurodegenerative disorder. Key findings showed:
- 48% slowing of clinical progression at the 50mg dose
- Statistical significance achieved on the Unified MSA Rating Scale (UMSARS)
- Favorable safety profile across all treatment groups
- Positive MRI biomarker data showing iron stabilization in affected brain regions
"ATH434 has demonstrated significant slowing of clinical progression and a favorable safety profile in Multiple System Atrophy. Given the strength of the data and the tremendous unmet need for treating MSA, I am looking forward to engaging with FDA on the best path to bring ATH434 to individuals with MSA as soon as possible," stated David Stamler, M.D., Chief Executive Officer of Alterity.
Strategic Allocation of Funds
The newly secured capital will primarily support:
- Advancement of ATH434's regulatory and development activities
- Ongoing clinical development programs in MSA
- Continued research and discovery efforts in neurodegenerative diseases
- Investigation of novel compounds for major indications like Parkinson's Disease
- General working capital requirements
Investment Structure and Terms
The placement includes an innovative structure offering one free attaching option for every three new shares issued. These options will have an exercise price of A$0.028 and will expire on February 26, 2027. The company's management has demonstrated confidence in the program, with CEO David Stamler committing to participate in the placement.
The successful capital raise positions Alterity Therapeutics to accelerate its development programs and potentially bring breakthrough treatments to patients suffering from devastating neurodegenerative disorders. The company's focus on MSA, a condition with limited treatment options, represents a significant opportunity to address an urgent unmet medical need.
