Manchester-based Intercytex Group, which specialises in regenerative medicine products to restore skin and hair, has raised £2.75 million before expenses through a placing for cash of over 6.5 million new shares.

The new shares, which represent approximately 8.2% of the company’s issued capital prior to the placing, have been placed with existing institutional shareholders at 42 pence per share. The placing price represents a discount of approximately 10% to the closing middle market price on the London Stock Exchange's AIM, on September 8.

Commenting on the placing, Nick Higgins, Intercytex' chief executive, said that the funds "will enable us to take our lead treatment for chronic wounds, Cyzact (ICX-PRO), through Phase III trials in readiness for partnering". The cash will also be used to continue the development of the other products in the company’s late-stage pipeline, he said, and "we look forward to reporting further progress in due course".

Cyzact has been designed to stimulate active repair in patients suffering from venous leg ulcers and Intercytex recently completed a Phase II trial of the for diabetic foot ulcers