QRxPharma's A$14 million Placement oversubscribed

QRxPharma Limited (ASX: QRX and OTCQX: QRXPY) has today announced a Placement which raised A$14 million and which was significantly oversubscribed.

The issue price under the Placement is A$0.85 per share, a 15% discount to the last closing price of QRxPharma shares on 28 September 2010 of A$1.00.

The Company was pleased to accept some of the oversubscriptions from investors and increase the size of the placement from A$10 million to A$14 million.

RBS Morgans Corporate Limited was Lead Manager to the Capital Raising.

QRxPharma intends to use the proceeds from this capital raising to fund a Phase 3 labeling claim study that will enable the company to make marketing and advertising claims in Europe and the U.S. for MoxDuo IR, an immediate release Dual-Opioid^® pain therapy. The funds will also be used to support the company as it files its New Drug Application (NDA) with the US Food and Drug Administration (FDA) and advances its Marketing Authorisation Application (MAA) in Europe in CY2011.

The additional funds raised by increasing the size of the placement will enable the company to further progress the development programs of MoxDuo CR (controlled release) and MoxDuo IV (intravenous).

The Placement shares will be allotted in two tranches with Tranche 1, comprising approximately 3.8 million shares, to be allotted on Thursday 7 October 2010. The allotment of Tranche 2, comprising approximately 12.6 million shares, is subject to shareholder approval at the company's AGM to be held on Monday 8 November 2010. These shares are expected to be allotted on Tuesday 9 November 2010.

The Company will also implement a Share Purchase Plan (SPP) to allow its retail shareholders to participate in the capital raising for up to A$15,000 per shareholder at A$0.85 per share. The Record Date for participation in the SPP is Thursday 30 September 2010. The details of the SPP will be sent to shareholders in due course.  

QRxPharma CEO and Managing Director, Dr John Holaday commented, "We are encouraged by the strong level of support we received for this offering as we progress towards the commercialization of our Dual Opioid portfolio of products. QRxPharma is pleased to be one of the few Australian companies with a drug in the final stages of clinical development."

"MoxDuo has the potential to revolutionize the management of pain from the hospital to the home. We have administered MoxDuo IR to well over 500 patients with moderate to severe pain following bunionectomy or total knee replacement surgery, and data indicate excellent pain relief with a 50-75% reduction in moderate to severe side effects. Results from our Phase 3 studies set the stage for NDA filing with the FDA, and once approved, we anticipate the launch of MoxDuo IR into the US$12 billion marketplace in the US and Europe in 2012," he added.