Birex Raises $4.75 Mill In International Placement

The Birex pharmaceuticals company of western Hungary has raised $4.75million in an international private placement of 6,334 new shares at a face value of $750 each, according to MTI Econews.

Swiss, US and UK institutional investors subscribed to the shares, according to Birex chairman Peter Rona. It is understood that the new shares account for 7% of the firm's total shares. As a result, the 66% stake in Birex held by the First Hungary Fund has now fallen to 63.1%. The share issue was the first of its type undertaken by a former eastern bloc pharmaceuticals R&D company.

The capital raised from the share placement will fund Birex' activities for the next 14-15 months. It will partly be used for the conclusion of R&D work on its main product, bimoclomol, which is being developed for the treatment of complications arising from diabetes, and which is undergoing Phase II clinical trials.