SAN DIEGO - Dare Bioscience, Inc. (NASDAQ: DARE), a biopharmaceutical company focused on women's health, announced today it has entered into a stock purchase agreement with Lincoln Park Capital Fund, LLC (LPC), a Chicago-based institutional investor. The agreement provides Dare with the option to sell up to $15 million of its common stock to LPC over the next 24 months, contingent upon SEC approval and other conditions.
Under the agreement, Dare Bioscience will dictate the timing and volume of stock sales to LPC, which is obliged to comply with the purchase terms. LPC will purchase shares based on the market prices at the time of each transaction initiated by Dare, without an upper limit on the share price.
Sabrina Martucci Johnson, President and CEO of Dare Bioscience, expressed optimism about the transaction, likening it to a previous deal with LPC that funded a successful Phase 3 study leading to FDA approval. She indicated that the current funds may similarly support the company's portfolio, particularly the advancement of Sildenafil Cream, 3.6%, a potential treatment for female sexual arousal disorder.
The agreement stipulates that LPC will refrain from short selling or hedging Dare's stock, with no warrants issued in the transaction. Dare retains full discretion over the use of proceeds and may terminate the agreement at any time without incurring costs or penalties.
This financial move aims to bolster Dare's development of its investigational products. The company's portfolio includes XACIATO (clindamycin phosphate) vaginal gel 2%, already FDA-approved and marketed by Organon, as well as other candidates in various stages of clinical development.
The securities sale to LPC has not been registered under the Securities Act of 1933 or state securities laws, therefore requiring registration or an applicable exemption for the transaction to proceed legally.
The announcement is based on a press release statement and is intended for informational purposes only. It does not constitute an offer to sell or solicit the purchase of any securities.
In other recent news, Daré Bioscience, Inc. has made notable strides in women's health treatments. The company's topical Sildenafil Cream, 3.6%, intended for treating female sexual arousal disorder (FSAD), has demonstrated safety and tolerability in a recent Phase 2b clinical trial. The study, published in The Journal of Sexual Medicine, indicated that the cream did not induce typical side effects such as headaches and flushing, which are commonly associated with oral sildenafil treatments.
Furthermore, the RESPOND study suggested that both 1-month and 24-hour recall patient-reported outcome instruments could be effectively used to measure treatment efficacy in future clinical studies. The company's CEO, Sabrina Martucci Johnson, expressed satisfaction with these developments and continues to engage with the FDA regarding the cream's development.
In financial news, Daré Bioscience reported a decrease in general and administrative expenses and research and development expenses. The company has also secured funding through a royalty monetization transaction and a grant agreement, aiding in the development of DARE-LARC1, an investigational contraceptive. These recent developments reflect Daré Bioscience's commitment to advancing their product candidates while managing capital responsibly.
InvestingPro Insights
Dare Bioscience's recent stock purchase agreement with Lincoln Park Capital Fund aligns with several key financial metrics and trends identified by InvestingPro. As of the latest data, Dare has a market capitalization of $31.88 million, reflecting its position as a small-cap biopharmaceutical company focused on women's health.
An InvestingPro Tip highlights that Dare is "quickly burning through cash," which contextualizes the company's decision to secure this $15 million funding option. This financial move appears strategic, given that another InvestingPro Tip notes the company "holds more cash than debt on its balance sheet," potentially allowing Dare to maintain this favorable cash position while funding its research and development efforts.
The company's financial performance metrics underscore the challenges and opportunities it faces. With a revenue of $2.84 million in the last twelve months as of Q2 2023, and a gross profit margin of -662.27% over the same period, Dare is clearly in a phase of heavy investment in its product pipeline. This is typical for biopharmaceutical companies with products in development stages.
Despite these financial pressures, Dare has shown a strong return over the last month, with a 14.42% price total return. This recent market performance may have contributed to the company's ability to secure the new funding agreement on favorable terms.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Dare Bioscience, providing deeper insights into the company's financial health and market position.
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