LA JOLLA, Calif. - CalciMedica, Inc. (NASDAQ:CALC), a biopharmaceutical company, announced the initiation of an underwritten public offering of its common stock. The company, which specializes in developing therapies for inflammatory and immunologic diseases, will be selling all the shares in this offering. Additionally, CalciMedica plans to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares offered.
The success of the offering depends on market conditions, and there is no guarantee of its completion or the conditions it will entail. JonesTrading Institutional Services LLC is serving as the sole book-running manager for the offering.
The offering is being conducted in accordance with a shelf registration statement, including a base prospectus, filed with the Securities and Exchange Commission (SEC) on August 11, 2023, and declared effective on August 18, 2023. The accompanying prospectus and preliminary prospectus supplement detailing the offering terms will be filed with the SEC and made available on their website.
CalciMedica is known for its proprietary technology targeting CRAC channels, aiming to modulate immune responses and protect against tissue cell injury. Its lead product candidate, Auxora™, has shown positive results in clinical trials. The company is also involved in ongoing clinical trials for various conditions, with results expected in 2025.
This press release does not serve as an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an offer would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.
The information in this article is based on a press release statement from CalciMedica.
In other recent news, CalciMedica Inc., a biopharmaceutical company, announced significant developments in its clinical trials and corporate governance. The company reported positive results from its Phase 2b CARPO trial evaluating Auxora for acute pancreatitis with systemic inflammatory response syndrome. The study, involving 216 patients, indicated a substantial reduction in severe respiratory failure and other critical endpoints in patients treated with high doses of Auxora compared to placebo. CalciMedica plans to discuss the Phase 3 trial design for Auxora with the FDA, focusing on patients with accompanying systemic inflammatory response syndrome.
In addition, CalciMedica expanded its 2023 Equity Incentive Plan by 1.5 million shares, following approval from its stockholders. The company's Annual Meeting also resulted in the election of two Class I directors, Eric Bjerkholt and Fred Middleton, and the ratification of Moss Adams LLP as the principal independent registered public accounting firm for the fiscal year ending December 31, 2024.
Analyst firms such as Oppenheimer and Singular Research have maintained positive ratings for CalciMedica, citing the company's recent clinical advancements and the market potential of its treatments. These are among the recent developments in the company's operations.
InvestingPro Insights
CalciMedica's decision to initiate a public offering comes at a time when the company faces some financial challenges, as revealed by InvestingPro data. The company's market capitalization stands at $42.25 million, reflecting its current valuation in the biotech sector.
InvestingPro Tips highlight that CalciMedica is "quickly burning through cash" and "not profitable over the last twelve months." These insights are particularly relevant to the public offering, as they suggest the company may be seeking additional capital to fund its ongoing research and development efforts, including the clinical trials for Auxora™ mentioned in the article.
Despite these challenges, CalciMedica has shown strong market performance, with a 67.96% price total return over the past year. This positive trend could potentially attract investor interest in the public offering. Additionally, an InvestingPro Tip notes that the company "holds more cash than debt on its balance sheet," which may provide some reassurance to potential investors about its financial stability.
It's worth noting that CalciMedica's stock is currently trading at 57.28% of its 52-week high, suggesting there might be room for growth. However, investors should consider that the company's P/E ratio is negative at -2.95, reflecting its current unprofitability.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for CalciMedica, providing a more comprehensive view of the company's financial health and market position.
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