pSivida rights issue to fund DME trials

Australia-based bio-nanotech company pSivida has announced details of a non-renounceable rights issue offering one new ordinary share for every eight shares held at May 22 at an issue price of AU$0.60 per share.If fully subscribed and excluding the effect of vested option, this will result in raising net proceeds of around A$29.9 million ($22.0 million), the company says.

Capital raised from this Rights Issue will primarily fund the Phase III clinical trials of its medical implant Medidur for the treatment of diabetic macular edema (DME), and Phase IIa studies of the firm's lead BioSilicon product, BrachySil, which is being developed for the treatment of inoperable pancreatic cancer. pSivida expects to receive a significantly greater return by funding the Medidur trials under the co-development agreement to receive a profit share with Alimera Sciences rather than a straight royalty which would be payable if we did not co-fund the trials.