logo
  Join        Login             Stock Quote

Catalyst Pharmaceutical (CPRX) Prices 6M Unit Offering At 8 Pct Discount; Shares Hit New Low

 May 24, 2012 10:26 AM
 


(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.

[Related -Volatile, Consolidation Session]

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.

[Related -Another Negative Day For The Market]

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.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.