(By Balaseshan) Catalyst Pharmaceutical Partners Inc. (NASDAQ:CPRX) said it has priced an underwritten offering of 6 million units at $0.80 per unit, a 8% discount to Wednesday's close. Following the news, the stock touched a new 52-week low.
Each unit consists of one share of its common stock and a warrant to purchase up to one share of its common stock. The warrants will have a 5-year term and an exercise price equal to $1.04 per share.
Catalyst expects to receive net proceeds of about $4.0 million (not including any cash proceeds from a future exercise of the warrants), after deducting the underwriting discount and estimated offering expenses.
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Catalyst Pharmaceutical anticipates the offering to close on May 30, 2012, subject to customary closing conditions.
The proceeds of this offering will be used to fund the activities necessary to support the submission of an NDA for CPP-109 for FDA approval and to begin to prepare for the commercial launch of CPP-109, assuming that the data from the currently ongoing Phase 2b trial are compelling and the FDA accepts an NDA submitted by Catalyst for CPP-109 based on the data from the Phase 2b trial.
The proceeds will also be used to manufacture sufficient CPP-115 for use in one or more future safety and/or proof-of-concept studies of CPP-115, and for general corporate purposes.
Cowen and Company, LLC is acting as sole book-running manager for the offering. ROTH Capital Partners is serving as a co-manager.
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Catalyst has two products in development, CPP-109 and CPP-115, and is currently evaluating its lead product and first-in-class GABA aminotransferase inhibitor candidate, CPP-109, in a Phase 2b study for the treatment of cocaine addiction.
Catalyst also expects to evaluate CPP-109 for the treatment of other addictions. The company anticipates to develop CPP-115 for addiction, epilepsy (initially infantile spasms) and other CNS indications.
CPP-109 and CPP-115 have been granted "Fast Track" status by the FDA for the treatment of cocaine addiction. CPP-115 has been granted U.S. orphan drug designation for the treatment of infantile spasms by the FDA and has been granted EU medicinal product designation for the treatment of West Syndrome by the European Commission.
CPRX is trading 20.69% lower at $0.69 on Thursday. The stock has been trading between $0.68 and $2.25 for the past 52 weeks.