Regal Partners shares tank as Opthea warns of funding concerns
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The news: Shares in Regal Partners tumbled after its 30%-owned biotech Opthea said there was "material uncertainty" of its "ability to continue as a going concern" following a failed clinical trial.
The numbers: Regal shares were down 15.9% to $2.38 at 2:30pm AEDT, having retreated by around 35% over the last 12 months.
The context: ASX and Nasdaq listed small cap Opthea told investors that its phase three clinical trial for a novel therapy for patients with wet age-related macular degeneration — an eye condition that can lead to vision loss — had failed to meet its primary endpoint.
Opthea said the company may become liable to pay amounts to investors under its development funding agreement (DFA), which would have "a material adverse impact on the solvency of the company".
It noted that "certain instances and events" could see the termination of the DFA, whereby Opthea would be obligated to pay the investors up to four multiples of the amounts paid to the company.
Opthea said its management and board of directors have been in active discussions with the investors to explore possible options for the company. Opthea consequently requested trading be suspended on the ASX and Nasdaq until it can provide more clarity.
The source: ASX
