Poolbeg Pharma, a London-based clinical-stage biopharmaceutical company, announced on Tuesday a £4.1 million equity raise to advance its pipeline of drug candidates targeting diseases with high unmet medical needs. The announcement comes as the company reported a widened pretax loss for 2024.
The equity raise will be conducted through the sale of new shares priced at 2.5 pence each, with the company aiming to secure at least £2.7 million from a share placing through an accelerated bookbuild process. An additional £1.3 million is expected through direct share subscriptions, while the remaining £100,000 will be sought from existing retail investors via the BookBuild platform. Shore Capital Stockbrokers Ltd will serve as the sole bookrunner for the process.
According to Poolbeg, the net proceeds will be directed toward achieving "expected value inflection points" for its two key clinical programs: the POLB 001 Phase 2a trial and an oral GLP-1 proof of concept trial.
Financial Performance and Pipeline Progress
Poolbeg reported that its pretax loss widened to £5.9 million in 2024, up from £4.5 million in 2023. With no revenue stream, the increased loss was attributed to higher costs, with administrative expenses rising 56% to £5.3 million from £3.4 million the previous year. The company also reported a net loss on disposal of assets of £261,000, compared to none in 2023.
The company's cash balance stood at £7.8 million as of December 31, 2024, representing a 36% decrease from £12.2 million at the end of 2023. Poolbeg characterized this reduction as reflecting "disciplined capital allocation to drive pipeline advancements."
Executive Chair Cathal Friel commented on the company's progress: "During 2024, we made significant advancements across our pipeline of drug candidates while maintaining our disciplined approach to capital allocation. Our clinical programmes target large addressable markets, including cancer immunotherapy-induced Cytokine Release Syndrome with our lead programme POLB 001, and we remain focused on maximising their potential to create value for our shareholders."
Clinical Programs and Market Potential
POLB 001, Poolbeg's lead program, is an oral drug designed to prevent cancer immunotherapy-induced Cytokine Release Syndrome (CRS), a potentially life-threatening systemic inflammatory response that can occur following certain cancer treatments. CRS represents a significant challenge in cancer immunotherapy, and an effective preventative treatment could substantially improve patient outcomes and expand the utility of immunotherapeutic approaches.
The company's second focus area is its oral GLP-1 program, which targets the rapidly expanding obesity market. GLP-1 receptor agonists have gained substantial attention and market share in recent years for their efficacy in weight management and metabolic disorders. Poolbeg's oral formulation approach could potentially offer advantages over existing injectable GLP-1 therapies.
The funds raised are expected to extend Poolbeg's financial runway into 2027, providing the company with sufficient resources to advance these clinical programs through critical development milestones.
Following the announcement, Poolbeg's stock was down 12% to 2.51 pence on Tuesday morning in London trading, reflecting investor reaction to both the widened loss and the equity raise plans.
The company's strategic focus on conditions with significant unmet needs and large market potential aligns with industry trends toward developing targeted therapies for specific patient populations while addressing major healthcare challenges in oncology and metabolic disorders.
