KaloBios Pharmaceuticals, Inc. announced the pricing of its underwritten public offering of its common stock. The company is looking to issue 7.5 million shares at $4 per share. KaloBios expects net proceeds of $27.9 million through this offering.
Underwriters have been granted an option to purchase an additional 1.1 million shares of KaloBios’ common stock, with a 30-day window to do so.
KaloBios intends to utilize the net proceeds from the public offering primarily for the development of its pipeline. The company also has plans to use the net proceeds for working capital and other general corporate purposes. Cash and cash equivalents at the end of Jun 30, 2013 were roughly $19.5 million.
We are encouraged by KaloBios’ progress on its pipeline. KB001-A, a second generation, anti-TTSS antibody, is currently in a phase II study for the treatment of chronic Pa infections in cystic fibrosis (CF) patients. While KaloBios has orphan drug status for KB001-A in the EU, the U.S. Food and Drug Administration (FDA) has completed its review for the same and has asked for additional information.
After the completion of the ongoing phase II CF study, KaloBios will provide the FDA with additional data. Enrollment is expected to complete in mid-2014 with top-line results due in the fourth quarter of 2014.
KaloBios has completed enrollment of patients in a phase II study on another candidate, KB003. KB003 is being studied for the treatment of severe asthma. KaloBios anticipates top-line results in the first quarter of 2014.
KaloBios is currently conducting a phase I study on its anti-EphA3 mAb, KB004, for the treatment of hematologic malignancies. After top-line data from this study is obtained (in the fourth quarter of 2013), KaloBios plans to start the phase II expansion phase of the study in acute myeloid leukemia and myelodysplastic syndrome.
KaloBios currently carries a Zacks Rank #3 (Hold). Companies that look well-positioned include Roche Holding (RHHBY - Free Report) , Questcor Pharmaceuticals Inc. and Actelion Ltd. (ALIOF - Free Report) . All three carry a Zacks Rank #1 (Strong Buy).