Allarity Therapeutics Inc has secured USD 20 million in non-convertible debt financing from Streeterville Capital to support the development of its cancer therapy candidate stenoparib.

The financing was structured through a note purchase agreement under which the company issued two promissory notes: one with a principal amount of USD 10.93 million and another secured note worth USD 10 million. Together, the notes provide around USD 20 million in net proceeds to the company.

Allarity said the funding is expected to extend its cash runway until the summer of 2028. The proceeds will primarily be used to advance the clinical development of stenoparib, including completion of Phase 2 patient enrollment, preparation for regulatory discussions with the US Food and Drug Administration, and progress toward pivotal trials and eventual commercialization.

Stenoparib is an oral small-molecule inhibitor targeting PARP1/2 and tankyrase 1/2, designed to block both PARP activity and WNT signalling pathways that are associated with tumour growth. The drug is currently being evaluated for advanced ovarian cancer and has shown durable clinical benefits in heavily pre-treated patients in ongoing Phase 2 studies.

The company is also advancing its DRP companion diagnostic platform, which uses gene expression signatures to identify patients most likely to benefit from specific therapies, potentially improving treatment outcomes.

Allarity holds exclusive global rights to develop and commercialize stenoparib, originally discovered by Eisai Co Ltd. The therapy is also being explored for potential use in other cancers, including small cell lung cancer and colorectal cancer.