The roiled stock market is causing some headaches at a European biotech company. Troubled by disappointing mid-stage trial data and a weak stock market, Denmark's Pharmexa is signaling that it will need to explore "strategic alternatives" as it finds itself short of the cash needed to operate under its current strategy. Pharmexa raised $18 million in a recent rights issue, far below what it had expected to earn.
"The way that the [preemption] rights were trading and the way the stock price performed during the fundraising process...we had expected more," Pharmexa CEO Jakob Schmidt told BioWorld International. "We are grateful for the money we got. In these markets, DKK90 million is still a decent amount of money. It's something to build on. Now we will take a few weeks to consider the options."
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- check out the report from BioWorld