Nektar lands upsized US$400m for eczema drug
Nektar Therapeutics secured US$400m from an upsized follow-on that capitalised on the surge in its shares following promising Phase IIb clinical results for its eczema treatment.
Joint bookrunners Jefferies, TD Cowen and Piper Sandler offered 6.9m shares on Wednesday, with pricing coming at the end of the day at US$58, a 12.6% discount to that day's close of US$66.35 but a premium to Tuesday's US$56 close.
The biotech's stock had jumped 51% on Tuesday after releasing new trial data and extended those gains on Wednesday, rising another 16.1%, allowing the offering to be upsized from the original US$300m funding target.
When announcing the deal, Nektar said it had US$229m in cash as of January 31, a figure that includes US$39.4m raised through an at-the-market stock sale programme in the fourth quarter.
Nektar said the new financing will fund completion of clinical trials on its eczema therapy.
Nektar said it plans to initiate a Phase III trial “as quickly as possible”, positioning it to seek FDA approval in 2029.
Shares ended Thursday up another 7% at US$71.