Destiny Pharma leaps on £1.6m grant and UK-China collaboration

Destiny Pharma jumped on Friday after being awarded funding of up to £1.6m from a collaboration established under the UK-China AMR grant fund.

The fund, which was set up by Innovate UK and the Department of Health and Social Care with the Chinese Ministry of Science and Technology, will allow the company to embark on a two-year project to examine the use of its novel XF drugs to prevent, control, and eradicate life threatening bacteria or "superbugs" without generating resistance.

Destiny said its XF-drugs have shown "great potential" to address antimicrobial resistance and combat bacterial biofilms in a range of bacteria, including MRSA, and added that it is due to commence a key Phase 2b study for XF-73, its lead asset, in 2019 for the prevention of for the prevention of post-surgical staphylococcal infections.

The AIM traded company's team will collaborate on the project with expert groups at Cardiff University's School of Dentistry and College of Biomedical and Life Sciences, led by Professor David Williams, and a team at Tianjin Medical University, China.

"The Microbial Diseases research group at Cardiff University is delighted to bring its expertise to this exciting project. The widespread emergence of antimicrobial resistance in recent years has highlighted the need for alternative and effective antimicrobial agents. We therefore feel that the XF drug platform from Destiny Pharma provides timely and significant tools in our armoury against antimicrobial resistance," said Williams

Destiny Pharma's shares were up 12.21% at 73.50p at 1101 GMT.