Prana Biotechnology has announced a new private share offer to raise up to $10 million to further fund the development of its lead compound PBT2, currently in a Phase IIa trial in patients with Alzheimer's disease.

This trial, scheduled for completion in December, is designed to advance the commercialisation of Prana's programs to develop novel treatments for neurodegenerative disorders.

The Phase IIa trial of PBT2 is a double-blind, placebo-controlled safety and tolerability study in patients with Alzheimer's disease.

The trial is well advanced, with over 70 per cent of study patients dosed, and almost half of the target 80 patients have already completed the trial.

"Given this progress, we are particularly pleased with the positive safety and tolerability demonstrated by PBT2 to date," Prana's CEO, Geoffrey Kempler, said.

"We are on track to complete the trial by the end of the year and report results in the first quarter of 2008."

The placement is subject to shareholder approval at a meeting in October 15.

Source: Prana Biotechnology