Giving you all the latest in Stock Market Information as it happens...


Patrys Secures Funding

Patrys Limited (PAB), a company focused on the development of natural human antibodies for the treatment of cancer, announced today that it has secured up to A$15 million in funding. The funding facility has a term of up to three years and is divided into three "tranches" of A$5 million. Patrys will receive a minimum of A$4 million during the first twelve (12) months of the facility. The investor, the Advance Opportunities Fund (Advance), has the option to provide an additional A$1 million of funding to complete the first tranche of the facility. Two additional tranches of $5 million each may be provided during the three-year term of the facility, subject to the consent of both parties. Advance is an institutional investment fund managed by Singaporean based Value Capital Asset Management. Patrys intends to use the funding to enhance shareholder value primarily by supporting the advancement of its lead anti-cancer therapeutic candidates, including, but not exclusively, PAT-SM6, PAT-SC1 and PAT-LM1. PAT-SM6: the Company has recently received approval to commence a clinical trial to evaluate PAT-SM6 as a treatment for melanoma. The funding received from Advance will be used in part to advance PAT-SM6 into a larger clinical trial in 2011 that will target additional melanoma patients and patients with other cancers. PAT-SC1: PAT-SC1 is a very promising therapeutic candidate that has already provided a significant survival benefit to 35 gastric cancer patients treated with the product in a Phase I/II human clinical trial. During the remainder of 2010 and first half of 2011, Patrys intends to manufacture PAT-SC1 in preparation for a Phase IIb trial targeting gastric cancer patients. PAT-LM1: lead product PAT-LM1, which has shown great promise as a potential treatment for several deadly cancers, will be prepared for a clinical trial which is expected to begin in the second half of CY2011. This trial would target patients with several different types of cancer. Each of PAT-SM6, PAT-SC1 and PAT-LM1 utilise new mechanisms for killing cancer, offering patients an alternative where existing products are largely ineffective at prolonging survival. Advance will subscribe for structured notes, which the investor may elect to convert to ordinary shares using one of two pricing formulas: 35% premium to share price at beginning of each $5 million tranche: notes to be converted at a 35% premium to the weighted average price of Patrys shares at the beginning of each respective $5 million tranche. 15% discount to future price: notes to be converted to equity at a 15% discount to the weighted average price of Patrys shares at the time of the actual future conversion. Patrys Chief Executive Officer, Dan Devine said: “This facility secures an important source of funds at an exciting phase of the Company’s development as Patrys advances several lead products through various stages of clinical development." "Patrys was able to lock in this funding at either a premium to today's price or based on future prices, meaning all funding received will be done at a price that should reflect the ongoing achievement of clinical, partnering and other milestones,” added Patrys Chief Financial Officer, Roger McPherson. Jason Fisher, Partner, from Advance Opportunities Fund added: “Patrys has all of the elements we are looking for in one of our portfolio companies. Internally, it has multiple products with upcoming clinical milestones, an experienced management team, and a very novel and promising human antibody platform and pipeline. Externally, it is operating in one of biotechnology's most lucrative spaces, antibody therapeutics, and is targeting large markets by going after deadly cancers. These factors point to great opportunities for value growth.” For further information, please contact: Patrys Limited: Advance Opportunities Fund: Patrys Media and Investors: Daniel Devine Jason Fisher Rebecca Wilson Chief Executive Officer Partner Buchan Consulting P: +61 3 9670 3273 P: +65 6223 5478 P: +61 4 1738 2391 About Patrys Limited: Based in Melbourne, Australia, Patrys ( PAB) is focused on the development of natural human antibody therapies for cancer. Patrys has a pipeline of internal clinical candidates and products that are the subject of a collaboration agreement with a larger industry partner. More information can be found at Advance Opportunities Fund (Advance) and Value Capital Asset Management Pte Ltd (VCAM) Advance is an open-ended institutional fund whose investors are mainly based in Asia. VCAM, a Singaporean based investment management firm, has been appointed by the fund to manage its investment in Patrys. About PAT-SM6: The natural human antibody PAT-SM6 has been shown to have potent anti-cancer properties in a large number of laboratory and animal studies. PAT-SM6 binds to a form of Glucose-regulated protein 78 (GRP78), which is expressed on the surface of cancer cells but not detected on the surface of healthy cells. Once bound, the PAT-SM6/GRP78 complex is then internalised into malignant/cancer cells inducing apoptosis and cell death. Extensive third party literature has correlated GRP78 expression with an adverse prognosis in melanoma, breast, lung, gastric, hepatocellular and prostate cancer, and drug resistance in breast cancer. Given GRP78's reported roles with respect to several cancers, a molecule such as PAT-SM6 presents a promising anti-cancer treatment to the extent it interferes with the function of GRP78 in cancer. Patrys has filed patent applications to cover the PAT-SM6 antibody molecule, disease target, and the mechanism of action. A human clinical trial evaluating PAT-SM6 as a treatment for melanoma commenced in August of 2010. PAT-SC1 is a natural human antibody that acts by binding to a special form of a protein, called CD55, that appears on the surface of gastric cancer cells but not on the surface of healthy cells, thereby permitting PAT-SC1 to kill the cancer cells while sparing healthy cells. PAT-SC1 was evaluated in a human clinical trial under which thirty-five (35) treated gastric cancer patients showed a statistically significant increased survival benefit compared to a control group of fifty-three (53) patients that received the same treatment but for PAT-SC1. The dose of PAT-SC1 tested in this study was also shown to be very safe and well tolerated by patients receiving the treatment. About PAT-LM1: PAT-LM1 is a natural human antibody that has been shown to have potent anti-cancer properties in a large number of laboratory and animal studies. This lead product binds to a proprietary disease target that is expressed on the surface of cancer cells called Nono, or nmt55. With over 200 individual patient tumours screened, covering several different cancers, PAT-LM1 binds to nearly 98% of those tumours regardless of cancer type, age, gender or disease stage. PAT-LM1 does not bind to healthy tissues or cells, giving it a very safe profile