ARTICLE | Finance

Firmer footing

Australia's QRxPharma: Big financing to boost bargaining position for pain drug

August 8, 2011 7:00 AM UTC

Pain play QRxPharma Ltd. (ASX:QRX; OTCQX:QRXPY) raised A$25 million ($27 million) last month in a private placement designed to strengthen its financial footing for partnership discussions for its lead program in pain. The company hopes to supplement the financing - already the year's largest by an Australian biotech - with a planned A$10.4 million ($11.2 million) rights issue.

At June 30, QRxPharma had A$7.3 million in cash and a net operating cash burn of A$7.2 million last quarter. Last month's financing extends the company's runway into 2013, according to CEO John Holaday...