Hemogenyx shares boosted by partner investment

Shares in Hemogenyx Pharmaceuticals jumped on Wednesday after the clinical-stage biopharmaceutical group announced another investment from Prevail Partners via a share subscription at a significant premium to the current market value.

Investment fund Prevail Partners agreed to invest $350,000 (£269,000) through a subscription priced at $0.075 (5.6p) per share.

The subscription, which will take effect next March, followed a similar investment by the same fund last month, and comes at a 275% premium to Hemogenyx's closing price of 1.61p on Tuesday.

The investment comes ahead of Hemogenyx's planned HEMO-CAR-T pediatric study, in which Prevail Partners affiliate Prevail InfoWorks will act as clinical research organisation.

"As we seek to bring the curative power of cell therapies to children suffering from the otherwise largely incurable life-threatening diseases, AML and ALL, we are very confident in Prevail InfoWorks' ability to coordinate our Phase I clinical trial in pediatric relapsed/refractory AML and ALL," said Hemogenyx chief executive and co-founder Vladislav Sandler.

"Prevail Partners' strategic investment in the company, once again at a price very substantially above the company's existing share price, demonstrates their confidence in our CAR-T program and in our ability to execute the upcoming clinical study."

The stock was up 5.4% at 1.69p by 1239 BST, briefly surging to a high of 3.0p earlier on.