Curis, Inc. (NASDAQ:CRIS)
Curis, Inc. (NASDAQ:CRIS) shares fell 8% after the biotechnology company announced the pricing of an underwritten public offering of 20 million shares of common stock. The company has also granted underwriters 30-day option to purchase an additional 3 million shares. The offering is set to close on September 18, 2017 subject to customary closing conditions.
Curis, Inc. (NASDAQ:CRIS) stock has been under selling pressure since the start of the month. The stock is currently trading in a range after failing to close above the $2.25 mark on three attempts. It now faces immediate support at the $1.60 level, below which it could drop to this year’s lows of $1.47 a share.
The underwritten stock pricing appears to have spooked investors given that in addition to increasing the company’s debt, it will lead to further dilution of the stock. Part of the proceeds from the offering are to be used to fund potential acquisition of new businesses as well as technologies and products that have the potential to expand the business.
Curis, Inc. (NASDAQ:CRIS) will also use the funds to finance ongoing development of CUDC-907, a small molecule inhibitor of histone deacetylase as well as CA-170, CA-327, and CA-4948 in collaboration with Aurigene Discovery Technologies.
Aurigene Discovery Technologies has announced plans to carry out Phase 2 trial of CA-170, an oral small molecule designed to target the immune checkpoints PDL and Vista. The company has already carried out Phase 1 trials in the U.S, South Korea, and Spain.
The company did not report any dose limiting toxicities on the Phase 1 trial of CA-170 as it also demonstrated good oral bioavailability. Evidence of immune modulation was observed in patients’ blood and tumor biopsy samples.
According to Aurigene CEO, CSN Murthy, the results affirm CA-170 mechanism action as an oral checkpoint inhibitor. Together with Curis, Inc. (NASDAQ:CRIS), the company has already designed a phase 2 trial that will target selected populations of patients in major centers in India.
“Based on these initial clinical results, we are excited for the opportunity to expand testing of CA-170, possibly in earlier lines of treatment and in a greater number of immunotherapy treatment-naïve cancer patients,” commented Mr. Murthy.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.