Actinogen Medical Raises $5.2m for Alzheimer’s Treatment

KEY TAKEAWAYS:

• Actinogen Medical has raised $5.3 million to complete the second of three trials of Xanamem required by the US FDA.
• Alzheimer’s disease is the second biggest killer of Australians.
• There is a strong association between chronically raised cortisol levels in the blood and in the brain and the development of Alzheimer’s disease.

Alzheimer’s disease is the second biggest killer of Australians, but investors have just bet $5.3 million that a local listed company has the cure.

Actinogen backdoor-listed on the Australian Stock Exchange in 2014 in order to buy the global licence for Xanamem, a drug said to block the excess production of the hormone cortisol in the brain, from Edinburgh University.

The $5.28 million, raised via a placement at 4¢ a share that closed oversubscribed last week, follows an $11 million raising in 2015 and will allow Actinogen to complete the second of three trials of Xanamem required by the US Food & Drug Administration (FDA).

Xanamem was developed in response to evidence that there is a strong association between chronically raised cortisol levels in the blood and in the brain, and the development of Alzheimer’s disease said Actinogen managing director Dr Bill Ketelbey.

Cortisol is produced at times of physical and mental stress, and if it remains elevated for long periods of time, it can become toxic to the nerve cells in the brain. Several studies have shown an association between increased cortisol and cognitive decline.