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Catalyst prices public offering
Posted on Friday, 14 February 2020 14:27
Shares in Catalyst Biosciences fell 18.7 per cent yesterday after the clinical-stage biopharmaceutical company announced plans to raise USD 30.00 million to support manufacturing activities.
The Californian developer of treatments for haemophilia and other rare bleeding disorders said it is issuing 4.62 million shares at USD 6.50 apiece and has provided underwrites with overallotment option for a further 692,307 shares.
Its sale price represents a discount of a fifth over the close of USD 8.19 on 11th February, the last trading day before the company announced plans to hold a public offering
Catalyst could raise as much as USD 34.50 million if the Raymond James, as the sole bookrunning manager, and co-managers JonesTrading, Chardan, and LifeSci Capital exercise the green shoe.
The company is a fully integrated clinical research and development biopharmaceutical company, with a protease engineering platform that includes development programmes in haemophilia and a research program on subcutaneous (SQ) systemic complement inhibitors.
Its engineered coagulation factors are designed to overcome the significant limitations of current Intravenous treatment options, facilitate prophylaxis, and ultimately deliver substantially better outcomes for patients using SQ dosing.
Lead candidate MarzAA is phase 3-ready for annualised bleed rate (ABR) in individuals with haemophilia A or B with inhibitors, while DalcA is in a phase 2b trials for the treatment of haemophilia B.
Catalyst estimates the global market opportunity for these two drugs to be about USD 3.70 billion: USD 2.20 billion for the factor VIIa market and USD 1.50 billion for the factor IX (FIX) category.
The company said money raised will be used for general corporate purposes, which may include clinical and manufacturing activities for MarzAA and DalcA.
Proceeds could also fund research and development activities, capital expenditures, selling, general and administrative costs and facilities expansion.
Catalyst has incurred net losses in each year since inception in August 2002, including USD 30.10 million in the 12 months ended 31st December 2018 and USD 41.60 million in the first nine months of 2019.
As of 30th September 2019, the group had an accumulated deficit of USD 244.90 million and cash and equivalents, plus short-term investments, of USD 85.00 million.
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