Cambium Bio has locked in a A$2.4 million strategic investment from Zheng Yang Biomedical Technology, reinforcing its push into pivotal Phase 3 trials for its dry eye disease treatment.
- A$2.4 million placement at 20% premium to market price
- ZYBT’s stake to rise from 28.1% to 39.6%, pending shareholder approval
- Funds earmarked for initiating Phase 3 patient dosing and drug manufacturing
- Phase 3 trials planned across US, Australia, and Taiwan with data expected in H2 2027
- Shareholder meeting scheduled for 16 March 2026 to approve placement
Strategic Investment Strengthens Cambium Bio’s Clinical Push
Cambium Bio Limited (ASX, CMB) has secured a significant A$2.4 million capital injection from its major shareholder, Zheng Yang Biomedical Technology Co., Ltd. (ZYBT). The investment comes via a placement of over 4.3 million new shares priced at A$0.55 each, representing a 20% premium to the company’s recent closing share price. This move underscores ZYBT’s confidence in Cambium Bio’s lead product, Elate Ocular, and its potential in the lucrative dry eye disease market.
Funding to Accelerate Phase 3 Clinical Trials
The fresh capital will be directed primarily towards initiating patient dosing in Cambium Bio’s pivotal Phase 3 clinical program. This trial, targeting dry eye disease, is set to run across multiple sites in the United States, Australia, and Taiwan, with topline results anticipated in the second half of 2027. The funds will also support the manufacture of the investigational drug product and provide working capital for ongoing operations.
Deepening Strategic Partnership with ZYBT
ZYBT, a long-term partner since 2014, currently holds manufacturing and commercialisation rights for Elate Ocular in key Asian markets including China, Singapore, and Taiwan. This additional investment will increase ZYBT’s shareholding from 28.1% to nearly 40%, pending shareholder approval at a general meeting scheduled for 16 March 2026. The placement price premium reflects ZYBT’s strong belief in Cambium Bio’s clinical and commercial prospects.
Regulatory Progress and Upcoming Milestones
Cambium Bio has made notable regulatory strides, including FDA alignment on trial design and manufacturing controls, and securing Fast Track designation for Elate Ocular. Ethics and institutional approvals are in place, setting the stage for patient dosing to commence in the second quarter of 2026. The company also recently received a A$0.6 million R&D tax incentive refund, further bolstering its financial position.
Shareholder Approval and Market Implications
Given ZYBT’s status as a related party, the placement requires shareholder approval under ASX and Corporations Act rules. An independent expert report will accompany the notice of meeting to assist shareholders in evaluating the transaction. The outcome of this vote will be closely watched, as it will determine the pace at which Cambium Bio can advance its clinical program and potentially unlock value in a sizeable ophthalmology market.
Bottom Line?
Cambium Bio’s strengthened capital base and strategic backing set the stage for a critical phase in its clinical journey, with shareholder approval the next key hurdle.
Questions in the middle?
- Will shareholders approve the significant increase in ZYBT’s stake?
- How will Cambium Bio manage operational risks as it scales Phase 3 trials internationally?
- What commercial partnerships or licensing deals might follow successful Phase 3 outcomes?