Candel Therapeutics, Inc. (NASDAQ:CADL) shares are moving lower on Friday after the company priced its $80 million underwritten public offering of shares and pre-funded warrants.
The Details: The offering is priced at $6.00 per share for approximately 10 million shares. The company has also provided the underwriters with a 30-day option to buy up to 2 million additional common shares at the public offering price, minus the underwriting discount.
Candel expects to raise around $80 million in gross proceeds, excluding offering expenses. The company plans to use the funds to advance its product candidates, including preparing a Biologics License Application submission for CAN-2409 in prostate cancer, and for general corporate purposes.
The offering is expected to close on or around Dec. 16.
What Else: Earlier this week, the company announced that CAN-2409 achieved its primary endpoint in a Phase 3 trial. The treatment demonstrated a statistically significant improvement in disease-free survival for patients receiving CAN-2409 plus the prodrug (valacyclovir) alongside the standard of care, compared to standard of care alone.
"We have not seen significant advances in this indication in decades. CAN-2409 has demonstrated the potential to significantly improve long-term outcomes without adding substantial toxicity to standard of care radiation," said Glen Gejerman, Co-Director of Urologic Oncology at Hackensack Meridian Health, and one of the principal investigators of the study.
"If approved, this approach has the potential to transform the treatment paradigm in prostate cancer, offering patients with localized disease an effective treatment option that may reduce the risk of disease recurrence."
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CADL Price Action: At the time of publication, Candel stock is trading 36.0% lower at $6.27, according to data from Benzinga Pro.
Image: Michal Jarmoluk from Pixabay
