Motif Bio may need to raise cash as antibiotic trial accelerates

31st Oct 2016 10:58

(ShareCast News) - As it prepares to list on the Nasdaq, AIM-listed antibiotics developer Motif Bio said it was likely to need extra funding as enrolments for its latest clinical trial were going faster than expected.Patient enrolment in Motif's Revive 1 phase-three trial has exceeded projections and is now expected to produce data in the second quarter of next year, which has brought the weighting of costs forward.Overall costs have not been increased but the faster than expected enrolment has accelerated cash utilisation and increased its trade and other payables such that the group's liabilities are expected to exceed cash resources by roughly $4m as of Monday.With the company requiring near-term funding or an agreement to push back trial costs with its contract research organisation, Motif directors expressed confident they could secure necessary cash through public markets, private financing and partnering opportunities.As part of the US share offering, shareholder Invesco Asset Management has indicated an interest in buying $8.6m worth of of American depositary shares and ADS warrants.Motif also published news on Monday that tests of its Iclaprim antibiotic had demonstrated high potency against staphylococcal and streptococcal infections, including strains of staphylococcus aureus, beta-hemolytic streptococci, and streptococcus pneumoniae.