Candel raises US$100m in combo financing
Candel Therapeutics took a two-pronged approach to bridge liquidity as it awaits approval of its promising prostate cancer drug, raising US$100m late on Thursday through an overnight stock sale and another US$100m from a royalty agreement if the drug is approved.
After an earlier wall-cross, Citigroup, Cantor and Stifel priced 18.3m shares at US$5,45, bottom of the US$5.45–$5.65 range and an 8.4% discount on the previous closing price of US$5.95.
Separately, the late-stage biotech entered a US$100m royalty agreement with RTW Investments payable upon approval of its prostate drug – the royalty is tiered based on sales and will be terminated after US$250m of royalties are collected.
At launch, Candel revealed estimated cash and equivalents as of December 31 of US$119.7m, which it said was sufficient to fund operations into the first quarter of 2027.
Candel has finished Phase III trials on the prostate cancer drug and plans to apply for FDA approval in the fourth quarter this year. It also plans to launch a Phase III trial on the same drug in patients with lung cancer in the second quarter this year.
Barring delays, the FDA application and approval process could take up to a year (or more). The equity raise will buy Candel some extra leeway while it waits for FDA approval in prostate cancer, with money left over for the commercial launch and expanded trials.