Dicot Pharma has secured approximately SEK 231M (€21M) in gross proceeds following an oversubscribed rights issue, providing additional funding to support development of its erectile dysfunction drug candidate LIB-01 ahead of a planned Phase 2b study in the second half of 2026.

The rights issue was subscribed to around 134%, with strong participation from both existing shareholders and new investors. In response to excess demand, the company also carried out additional directed share issues, allowing it to expand the capital raise beyond the original offering size.

Of the total proceeds, approximately SEK 212.7M was raised through exercised subscription rights, while a further SEK 21M was added through a directed issue to accommodate oversubscription. No guarantee commitments were ultimately used.

Dicot Pharma said the strong demand reflects confidence in both the company and its clinical development programme. Elin Trampe, chief executive officer of Dicot Pharma, said the outcome enables the company to progress LIB-01 “at full pace” as it prepares for the next stage of clinical development.

LIB-01 is being developed as a treatment for erectile dysfunction, with a Phase 2b study planned in the United States later this year. The company said the programme remains its primary focus as it moves further into mid-stage clinical development.

The capital structure following the transaction also includes warrant instruments linked to the financing, with potential future proceeds depending on exercise outcomes. The company said these instruments could provide additional funding as development progresses.

Dicot Pharma highlighted that no guarantee commitments were required, reinforcing the level of investor demand during the offering period. The board said the directed issue was carried out to ensure fair allocation among investors and to strengthen the company’s financial position.

The company added that proceeds will be used primarily to support preparations for Phase 2b development activities, including programme execution and clinical planning in the US.