Lipigon Pharmaceuticals has attracted SEK 16.6 Million in a new share issue that will help it get nearer to its goal of reducing the number of global deaths caused by cardiovascular disease.

“We are extremely proud our new shares issue was oversubscribed, particularly during the ongoing Coronavirus pandemic when many investors are feeling more cautious. It is an indication of the level of belief in us,” says Stefan K Nilsson, CEO of Lipigon. “In addition we have around 25 new investors, many of whom have great reputations within the life science industry, who are investing themselves or through their own companies.”

Local capital investment companies Fort Knox AB and PartnerInvest i Norr, who are already major stake owners in Lipigon, have both increased their investment through the new share issue.

Drive development

Lipigon, which is located at the Umeå Biotech Incubator, specializes in developing medicines for lipid-related disorders, i.e. diseases caused by irregularities when fats are processed in the body. The company recently signed a major partnership deal with rapidly expanding HitGen, a biotech company listed on the Shanghai Stock Exchange, to develop drug candidates that treat blood fat disorders and cardiovascular disease.

“The new share issue was made to help drive the development of our various development programs and, among other things, to be able to begin safety studies for upcoming clinical trials. Another important factor is that our agreement with HitGen requires increased resources in the longer term,” says Nilsson. “The next step for Lipigon is to float on the stock market and there are costs associated with preparing for this.”

Photo: Lipigon team