Biotech company Viralytics plans to raise $27.1 million to help develops its anti-cancer drug Cavatak by issuing new shares.

The funding will enable Viralytics to complete phase two of trials of the drug Cavatak on late-stage melanoma patients.

It will also fund assessments of drug trials on patients with tumours including prostate, lung or metastatic bladder cancers.

“This capital raising is transformational for the company as it introduces several high quality international institutional investors to the register for the first time,” chief executive Malcolm McColl said.

“We can now more rapidly advance the program and will be in a strong financial position to negotiate with pharmaceutical partners and optimise commercial outcomes.”