CalciMedica, a biopharmaceutical company, has announced plans to raise up to $55 million to support the expanded clinical development of its leading product candidate. This news has led to a sharp increase in the company's shares, which are currently trading 16% higher at $5.53. Despite a recent decline of 45% over the past year, CalciMedica's stock is showing signs of recovery.
The funding will be obtained through a private placement of shares with both new and existing investors. Initial funding of $20.4 million will be provided, with the potential for an additional $34.2 million through the exercise of accompanying stock warrants. Notable healthcare-dedicated investors, including Deerfield Management, Soleus Capital, Stonepine Capital Management, and Aisling Capital, will be participating in the financing round. Existing investors such as Sanderling Ventures and Bering Capital are also involved.
The funds will primarily be used for ongoing and planned Phase 2 clinical trials of CalciMedica's product candidate, Auxora. These trials will focus on treating acute pancreatitis and acute kidney injury. The company estimates that if all warrants are exercised, the net proceeds from the funding round will be sufficient to support subsequent pivotal clinical trials and other related work in the acute pancreatitis and acute kidney injury programs.
As part of the securities purchase agreement, CalciMedica will issue approximately 5.11 million shares along with accompanying warrants to buy up to 5.47 million additional shares at a price of $3.70 per share.
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