CAMBRIDGE, Mass. & SALISBURY, England - KalVista Pharmaceuticals, Inc. (NASDAQ:KALV), a pharmaceutical company, announced the pricing of a public offering and a concurrent private placement of shares, aiming to raise a total of $60 million. The public offering consists of 5,500,000 shares at $10.00 per share, with expected gross proceeds of $55 million, excluding underwriting discounts and other expenses. Additionally, the company has agreed to a private placement with DRI Healthcare Acquisitions LP for 500,000 shares, expected to generate $5 million, mirroring the public offering price.
The proceeds from these transactions, which are anticipated to close on November 5, 2024, subject to customary closing conditions, will be used primarily to advance the clinical development and potential commercialization of KalVista's sebetralstat, a candidate for the treatment of hereditary angioedema (HAE). Remaining funds, if any, will support general corporate activities.
Jefferies, BofA Securities, TD Cowen, and Stifel are managing the public offering and private placement, while Jones is serving as financial advisor for the offering. The offering is made under a shelf registration statement filed with the Securities and Exchange Commission (SEC) on July 11, 2024, and declared effective on July 19, 2024.
The private placement shares will be issued in reliance on Section 4(a)(2) of the Securities Act of 1933, as they are not registered under the Securities Act or any state securities laws. KalVista's New Drug Application for sebetralstat has been accepted by the FDA, with a decision expected by June 17, 2025. The company has also sought approval from regulatory bodies in Europe and other regions.
This information is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The sale of these securities has not been made in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
In other recent news, KalVista Pharmaceuticals has made significant advancements in the development of sebetralstat, a potential treatment for hereditary angioedema (HAE). The company has presented data from the Phase 3 KONFIDENT trial, indicating that sebetralstat could offer faster resolution of HAE attacks when treatment is initiated earlier. Moreover, sebetralstat has been found to effectively reduce symptom burden and anxiety associated with HAE attacks.
KalVista has submitted Marketing Authorization Applications for sebetralstat in several regions, including the United Kingdom, Switzerland, Australia, and Singapore, with a Prescription Drug User Fee Act goal date set for June 17, 2025, by the U.S. FDA. The company has also appointed Brian Piekos as the new CFO, bringing over 25 years of financial and strategic planning experience in the biopharmaceutical industry.
Analyst firms H.C. Wainwright, Leerink Partners, and Jones Trading have issued a Buy rating for KalVista, indicating confidence in the company's recent progress. The company's shareholders have also recently elected two Class III directors and ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending April 30, 2025. These developments reflect the ongoing efforts of KalVista Pharmaceuticals to provide innovative treatments for diseases with significant unmet medical needs.
InvestingPro Insights
KalVista Pharmaceuticals' recent public offering and private placement come at a crucial time for the company as it seeks to advance its lead candidate, sebetralstat, for hereditary angioedema. According to InvestingPro data, KalVista's market capitalization stands at $458.52 million, reflecting investor interest in the company's potential.
However, the company faces financial challenges. An InvestingPro Tip indicates that KalVista is "quickly burning through cash," which underscores the importance of the recent $60 million capital raise. This cash infusion is likely to be critical for the company's clinical development and potential commercialization efforts for sebetralstat.
Another InvestingPro Tip reveals that KalVista "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it navigates the capital-intensive process of drug development and regulatory approval. This positive cash position may help alleviate some investor concerns about the company's financial stability in the near term.
It's worth noting that KalVista's stock has experienced volatility, with the InvestingPro data showing a 12.24% decline in the past week. This recent dip might be related to the dilutive effect of the new share issuance, but it also presents a potential opportunity for investors who believe in the company's long-term prospects.
For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into KalVista's financial health and market position.
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