Chiasma Inc., of Needham, Mass., said it entered a revenue interest financing agreement with Healthcare Royalty Partners for up to $75 million to support the ongoing development and planned commercial launch of its investigational octreotide capsules product candidate, (Mycapssa), for the maintenance treatment of adults with acromegaly. The company will receive $25 million in April and an additional $25 million upon FDA approval of Mycapssa, which has a PDUFA date of June 26. A further $15 million will become available when commercial drug supply is established, and the first commercial sale of the drug is made. Subject to the achievement of a commercial milestone, Chiasma will also receive $10 million in early 2022. In return, Healthcare Royalty will receive a tiered royalty in the low double digits on worldwide annual net revenues of Mycapssa and any other future products.
Idera Pharmaceuticals Inc., of Exton, Pa., said it sold shares in a private placement at $1.52 each, together with accompanying warrants to purchase additional shares, for aggregate gross proceeds of $5 million (tranche one). The common stock warrants have an exercise price of $2.28 per share, a term of three years and are exercisable after the company receives stockholder approval and files a charter amendment to sufficiently increase the company’s authorized shares of common stock to cover the exercise of the common stock warrants issuable under the agreement. The investor may, at their option, make a further investment of an additional $5 million to purchase shares of common stock (or common stock equivalents), together with accompanying common stock warrants to purchase additional shares of common stock (tranche two). Idera has the right to refuse tranche two if, prior to receipt of notice from the investor, the closing price of its common stock is $3.01 or higher for any 20 consecutive days after June 30. The investor’s option to invest in tranche two expires on Dec. 30, 2020. If tranche two is closed and including proceeds from the exercise of warrants, the company may receive up to $20.7 million in gross proceeds. The company plans to use the funding primarily to support the completion of the Illuminate-301 trial of its lead product, tilsotolimod, for the treatment of anti-PD-1-refractory metastatic melanoma.
Keros Therapeutics Inc., of Lexington, Mass., a company developing treatments for hematological and musculoskeletal disorders, has raised $96 million from its IPO, selling 6 million shares at $16, the high end of its proposed range. The company's primary focus is on leveraging its understanding of the transforming growth factor-beta family of proteins, master regulators of red blood cell and platelet production as well as of the growth, repair and maintenance of muscle and bone. Its lead candidate, KER-050, is a potential treatment for cytopenias. Shares began trading on Nasdaq April 8 under the symbol KROS, closing the first day at $20.08, up 25.5%.
Mersana Therapeutics Inc., of Cambridge, Mass., said it raised gross proceeds of approximately $65 million through its at-the-market facility. The company sold approximately 8.9 million shares at $5.59 each, and 2 million shares at $7.74 each. The funds will be used to advance its pipeline as well as for working capital and other general corporate purposes.
Q Biomed Inc., of New York, said it entered a financial transaction with lead investor Yorkville Advisors Global (YA) in which YA will have converted a minimum of $3.8 million into common stock and preferred stock and may convert an additional $500,000, which would be the total debt held by YA. As part of the agreement, YA will fund an additional $4 million in new capital over the next two weeks. Q Biomed said that restructuring of debt and new capital transforms the company's balance sheet, creating significant positive shareholder equity, a requirement for a Nasdaq listing.
Santhera Pharmaceuticals AG, of Pratteln, Switzerland, said it entered an equity-linked financing with Paris-based Iris for up to CHF12 million (US$12.35 million) over 12 months, with an option to extend the arrangement by a further 12 months with an additional CHF12 million. In return, Iris will receive Santhera shares to be created from the company’s authorized capital. The financing will provide additional liquidity in support of ongoing regulatory and development programs.
Zentalis Pharmaceuticals Inc., of New York, said it closed its IPO of 10.557 million shares, a total that includes the exercise in full by the underwriters of their option to purchase up to 1.377 million additional shares, at a public offering price of $18 per share, for total gross proceeds of approximately $190 million. The company’s common stock is trading on Nasdaq under the ticker symbol ZNTL.