Achieve Life Sciences Inc., a Seattle-based company developing a smoking cessation product, closed an underwritten public offering of units for gross proceeds of $13.8 million. The offering comprised class A units, priced at $4 per unit, with each one consisting of one share of common stock and a five-year warrant to purchase one share of common stock with an exercise price of $4 per share, and class B units, priced at $1,000 per unit, with each one comprising one share of series A preferred stock, which is convertible into 250 shares of common stock, and a five-year warrant to purchase 250 shares of common stock, also with an exercise price of $4 per share. Ladenburg Thalmann & Co. Inc. acted as sole book-running manager.
Catabasis Pharmaceuticals Inc., of Cambridge, Mass., priced an underwritten offering expected to raise gross proceeds of $42 million, primarily in support of its planned phase III trial of edasalonexent for the treatment of Duchenne muscular dystrophy. The company is offering 42 million units, each comprising one share of common stock and one common warrant to purchase another share of common stock, at a price of $1 per unit. Each common warrant has an exercise price of $1.20 per share and is exercisable immediately. Oppenheimer & Co. Inc. is acting as sole underwriter for the offering.
Cerebral Therapeutics Inc., of Aurora, Colo., closed a $3 million series A financing by institutional investors Granite Point Capital Management LP and Vivo Capital LLC. The company is exploring direct intracerebroventricular administration of a proprietary formulation of an antiepileptic drug to potentially enhance efficacy and reduce toxicity in adults with refractory epilepsy. Proceeds from the financing will be used to advance the company's lead program to an IND filing with the FDA. In conjunction with the financing, Warren Lammert, founder and chief investment officer of Granite Point Capital and former chairman of The Epilepsy Foundation; Mahendra Shah, managing director at Vivo Capital; and Stephen Farr, co-founder, president and CEO of Zogenix Inc. joined the Cerebral Therapeutics' board. Andre Cheng, a serial medical entrepreneur and partner and portfolio manager at Granite Point Capital, will also join as a board observer.
Eidos Therapeutics Inc., of San Francisco, priced an IPO of 6.25 million shares of its common stock at $17 per share, for anticipated gross proceeds of $106.3 million. The company said it intends to use about 80 percent of the net proceeds from the offering to fund clinical development of AG-10 for the treatment of two forms of transthyretin amyloidosis, including an ongoing phase II and planned phase III trials, as well as future clinical trials and additional R&D activities. J.P. Morgan Securities LLC and BofA Merrill Lynch are acting as joint book-running managers for the offering. Barclays Capital Inc. is also participating as a joint book-running manager. The company has granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock at the IPO price. Shares of Eidos (NASDAQ:EIDX) ended their first day of trading Wednesday at $23.12, for a gain of $6.12, or 36 percent. (See BioWorld Today, April 28, 2017.)
Galmed Pharmaceuticals Ltd., of Tel Aviv, Israel, priced an underwritten public offering of 5 million ordinary shares at $15 per share in an effort to raised gross proceeds of $75 million to support continued development of its experimental nonalcoholic steatohepatitis therapy, aramchol, fund development of new programs, advance business development activities, and for general corporate purposes. In addition, Galmed granted the underwriters a 30-day option to purchase up to an additional 750,000 ordinary shares at the public offering price. Stifel, Suntrust Robinson Humphrey and Cantor Fitzgerald & Co. are acting as the book-running managers for the offering.
Intiva Biopharma Inc., of Glendale, Colo., has filed to sell 2.46 million shares of common stock. According to its filing, it is developing drugs containing cannabinoids and/or terpenes for the treatment of various diseases. The company's shares trade on the OTCPink Market under the symbol NTVA.
Obseva SA, of Geneva, said it priced an underwritten public offering of 4.75 million shares at $15.39 each and granted the underwriters a 30-day option to purchase up to an additional 712,500 common shares at the public offering price. The company anticipates the total gross proceeds will be $73.1 million, excluding any exercise of the underwriters' option to purchase additional shares, and intends to use the net proceeds primarily to continue the development of its three new chemical entities in its pipeline and invest in pre-commercial activates in support of its pipeline assets.
Therapy Cells Inc., of Cheyenne, Wyo., said it secured $18.2 million of funding from private investors to complete development of its cell process and begin a phase I trial. The company has developed a method of growing tendon and articular cartilage for autotransplantation into individual affected patients.
Trillium Therapeutics Inc., of Toronto, said it entered a sales agreement with Cowen and Co. LLC, which will allow it to sell, through "at the market" issuances, shares that would result in aggregate gross proceeds of up to $25 million. The company intends to use the net proceeds for ongoing research and development activities and working capital and general corporate purposes.
Verrica Pharmaceuticals Inc., of West Chester, Pa., said it closed its IPO of 5.75 million shares at $15 each, which includes the full exercise of the underwriters' option to purchase 750,000 additional shares, for total gross proceeds of approximately $86.3 million. The shares are now trading on Nasdaq under the ticker symbol VRCA.