83.9 F
San Diego
Wednesday, Jul 24, 2024
-Advertisement-

Struggling Drugmaker Raises $43 Million in Stock Offering

Local drugmaker Regulus Therapeutics Inc. has managed to raise $43 million in a public stock offering — cash the struggling company needs to continue its research.

The company sold just over 50 million shares of its common stock at $0.91 per share. The company’s stock price, which was hovering in the $1 range for most of June, was trading for $1.19 at close of market July 26.

The new capital will be put to use as the company redirects its focus. Last month, Regulus announced it was scrapping two of its programs (including its lead product candidate), sending the company’s stock south. On top of the two internal programs, the company’s big pharma partner, AstraZeneca, recently terminated development of a drug it had licensed from Regulus back in 2012.

Regulus started the year with the bad news in January that the U.S. Food and Drug Administration was putting the brakes on a trial for Regulus’ lead product candidate, RG-101. Regulus was in a Phase 1 study of the drug for hepatitis C in patients with kidney failure. But after a second patient enrolled in the study developed a serious case of jaundice (a liver condition that causes yellowing of the eyes and skin), the trial was put on hold for safety reasons.

The suspension held for a year, while Regulus cut more than 30 percent of its workforce and lost its CEO, Paul Grint, who resigned in May.

Now Regulus only has one drug left in human clinical testing: RG-012, a drug for Alport Syndrome, which is in Phase 2 trials. Results are expected mid-2018. The company also has an early-stage research program called RGLS4326 for autosomal dominant polycystic kidney disease.

This new round of capital will go towards the clinical development of those two programs, as well as supporting the hunt for new potential drug programs and targets. The cash will also be used for capital expenditures, working capital, and general corporate purposes, the company said.

As of Regulus’ last earnings statement (May), the company had $14.9 million in cash and cash equivalents.

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-
-Advertisement-