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Ignyta Inc. Looking to Raise $50 Million in Stock Offering

San Diego’s Ignyta Inc., a drugmaker developing cancer therapeutics, is hoping to raise $50 million in an offering of its common stock, the company announced Wednesday.

Ignyta (Nasdaq: RXDX) also expects to grant underwriters a 30-day option to purchase up to an additional 15 percent of the shares offered, according to an Ignyta statement.

The company will use the proceeds to fund R&D for its development programs, including the clinical development of its late-stage cancer drug entrectinib. Funds will also be used to conduct ongoing clinical and pre-clinical development of other pipeline assets such as taladegib, RXDX-105, RXDX-106 and its Spark discovery programs.

The company recently dropped multiple less-promising drug programs from its pipeline, and fired its chief science officer Robert Wild in February of this year.

“After reviewing our pipeline and recent preclinical data for certain programs in light of this goal, and keeping in mind our obligation to be good stewards of our resources, we are undertaking this streamlining of our operations to focus on the key priorities and competencies that we believe are most likely to generate value for patients and stockholders,” Dr. Jonathan Lim, Ignyta’s chairman and CEO, said in a statement earlier this year.

The new funds will help fuel Ignyta’s more promising programs.

J.P. Morgan Securities LLC is acting as lead book-running manager for the new offering. Piper Jaffray & Co. is also acting as a book-running manager.

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