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A Melbourne-based biotech company that is developing a treatment to help fight certain blood cancers has secured a $20 million commitment from institutional and sophisticated investors to complete phase 1 of its first-on-human clinical trial of its product known as ALA-101.
Founded in 1999, Arovella Therapeutics is focused on developing its cell therapy platform from Imperial College London to treat blood cancers and solid tumours. The company’s main focus is using special immune cells – known as invariant natural killer T (iNKT) – to target and destroy cancer cells more effectively while reducing side effects.
Arovella’s leading product, ALA-101, is made by modifying iNKT cells to include an engineered protein known as Chimeric Antigen Receptor (CAR) to help these cells find and attack cancer cells with a marker known as CD19. The company is also working on treatments for solid tumours using different technology that targets a different cancer marker – CLDN18.2
The company is offering 17 cents per share (cps) to investors, representing a 2.9 per cent discount to the last closing price of 17.5 cents on 7 January.
The capital raised under the placement will be used to complete and report data from the planned phase 1 first-in-human clinical trial of ALA-101. The phase 1 clinical trial will be for patients with CD19- positive non-Hodgkin’s lymphoma and leukemia. The funds will also be used to strengthen Arovella’s iNKT cell therapy pipeline, advance Arovella’s solid tumour products and for general working capital purposes.
The raise includes a single cornerstone investment of $15 million from an unnamed Australian investor, in addition to commitments from new and existing backers, including funds management company Pengana Capital Group (ASX: PCG). After completing the placement, the Arovella will hold approximately $30.6 million cash and cash equivalents.
“This is a pivotal time for Arovella, which is a global pioneer in developing CAR-iNKT cell therapeutics. The level of support for the placement, driven by a substantial cornerstone commitment from an Australian-based private investor, along with new and existing institutional and sophisticated investors, highlights the potential of our highly differentiated cell therapy platform and our significant progress to date,” Arovella chairman Dr Thomas Duthy said.
“It provides us with the necessary capital to execute our goals, notably to assess the clinical benefit of our proprietary CAR-iNKT cells in cancer patients.”
For the remainder of the 2025 calendar year, Arovella expects to hit several key milestones, including IND approval through the US FDA to conduct a Phase 1 clinical trial in CD19-positive non-Hodgkin’s lymphoma and leukemia, commencing the trial and reporting initial patient data.
“I am delighted with the level of support that we have received from new and existing investors. We are excited to take ALA-101 into the clinic and assess its impact on patients with CD19+ blood cancers,” Arovella managing director and CEO Dr Michael Baker said.
“The company is well positioned, and we look forward to building on our success and creating value for our shareholders.”
Shares in ALA are up 5.71 per cent to 18cps at 2:03pm AEST.
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