Capricor cashes in on DMD trial results
Taking advantage of investor interest in its Duchenne muscular dystrophy drug, Capricor Therapeutics secured an upsized US$150m late on Thursday from an overnight stock sale.
Following an earlier wall-cross, Piper Sandler and Oppenheimer & Co priced 6m shares at a US$25 fixed offer price, a 1.6% discount to the US$25.40 last sale.
Shares of the gene therapy specialist skyrocketed 371.1% from US$6.36 on Wednesday to US$29.96 following the release of Phase III trial results before easing 15.1% to US$25.40 ahead of pricing – US$1.8bn worth of stock traded hands over the course of two days.
Capricor sold roughly an 11.5% stake, giving it nearly US$275m including existing cash to prefund the commercial launch of its DMD drug.
The Phase III trial showed clear improvements in DMD patient outcomes.
After being denied early approval in July based on Phase II results, Capricor is optimistic about its chances for FDA approval in its second attempt. Since Capricor is already on file for FDA approval, that application will be resubmitted with the new trial data, which puts the drug on track for approval sometime in mid-2026.
There is an urgent need for new DMD drugs since Sarepta Therapeutics discontinued development of one of its drugs earlier this year due to safety concerns.