Unicycive Announces $50 Million Private Placement
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The private placement of Series B Convertible Preferred Stock by Unicycive Therapeutics represents a significant capital infusion, amounting to $50 million. This influx of funds is pivotal for the company's clinical development programs, particularly the advancement of Oxylanthanum Carbonate (OLC), a potential treatment for kidney disease patients on dialysis. The involvement of healthcare-focused institutional investors underscores a vote of confidence in Unicycive's pipeline and strategic direction.
From a financial perspective, the terms of the placement—$1,000 per share of preferred stock—reflect the investors' valuation of the company's future prospects. A critical consideration for stakeholders is the dilutive effect on existing shares and the potential conversion terms of the preferred stock. It is essential to assess whether the expected proceeds justify this dilution and how the capital will be deployed to enhance shareholder value.
Oxylanthanum Carbonate (OLC) is the centerpiece of Unicycive's clinical development programs. The compound is likely being investigated for its efficacy and safety in treating kidney disease, which affects a significant patient population globally. The success of OLC in clinical trials and subsequent approval processes could position Unicycive as a key player in the nephrology market.
Given the current treatment landscape for dialysis patients, the introduction of a new therapeutic option like OLC could disrupt standard care practices and offer improved outcomes. It is crucial to monitor the clinical trial data, regulatory interactions and the projected timeline for commercial launch to gauge the potential impact on Unicycive's market share and revenue growth.
The participation of multiple healthcare-focused institutional investors, including new backers Octagon Capital and Great Point Partners, in Unicycive's private placement signals a broader market interest in innovative kidney disease treatments. The kidney disease treatment market is a substantial and growing segment, driven by an aging population and increased prevalence of diabetes and hypertension.
Analyzing market trends, the potential adoption rate of OLC post-approval is a key factor. This will depend on its comparative effectiveness, pricing strategy and reimbursement landscape. Long-term, Unicycive's commercial success will hinge on its ability to navigate these market dynamics, penetrate the established market and possibly expand indications for OLC beyond the initial target population.
Led by new investors Octagon Capital and Great Point Partners, LLC, with participation from new and existing investors including Logos Capital, Nantahala Capital, SilverArc Capital, Velan Capital, Vivo Capital and Walleye Capital
LOS ALTOS, Calif., March 14, 2024 (GLOBE NEWSWIRE) -- Unicycive Therapeutics, Inc. (Nasdaq: UNCY) (the “Company” or “Unicycive”), a clinical-stage biotechnology company developing therapies for patients with kidney disease, today announced that the Company has entered into a securities purchase agreement with certain healthcare-focused institutional investors for the sale of 50,000 shares of its Series B Convertible Preferred Stock at an offering price of
The financing is led by new investors Octagon Capital and Great Point Partners, LLC, with participation from new and existing healthcare institutional investors including Logos Capital, Nantahala Capital, SilverArc Capital, Velan Capital, Vivo Capital and Walleye Capital.
Leerink Partners and Piper Sandler are acting as placement agents for the private placement.
“This financing provides strong validation of the best-in-class potential for our clinical development programs led by Oxylanthanum Carbonate (OLC). We believe this funding provides the capital to take OLC through the approval process and plan for commercial launch as we look to provide a potential new treatment option for kidney disease patients on dialysis,” said Shalabh Gupta, M.D., Chief Executive Officer of Unicycive.
About the Private Placement
Pursuant to the securities purchase agreement, the Company will issue to purchasers
Shares of Series B Convertible Preferred Stock will be issued at a price of
Proceeds from the private placement will be used to support the advancement of the Company’s clinical development pipeline and general working capital. Unicycive’s pipeline is led by Oxylanthanum Carbonate (OLC) which is currently in an ongoing pivotal trial. Once complete, the Company expects to submit a New Drug Application (NDA) with the U.S. Food and Drug Administration (FDA) for approval of OLC for the treatment of hyperphosphatemia in the U.S. and, if approved, plans to commercially launch OLC in the U.S.
The securities to be issued in connection with the private placement described above are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws. Accordingly, such securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. Unicycive has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock issued in this private placement.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
For further information, please see the Company’s current report on Form 8-K to be filed with the Securities and Exchange Commission.
About Unicycive Therapeutics
Unicycive Therapeutics is a biotechnology company developing novel treatments for kidney diseases. Unicycive’s lead drug, oxylanthanum carbonate (OLC), is a novel investigational phosphate-binding agent being developed for the treatment of hyperphosphatemia in chronic kidney disease patients on dialysis. UNI-494 is a patent-protected new chemical entity in clinical development for the treatment of conditions related to acute kidney injury. For more information, please visit Unicycive.com and follow us on LinkedIn and YouTube.
Forward-Looking Statements
Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified using words such as “anticipate,” “believe,” “forecast,” “estimated” and “intend” or other similar terms or expressions that concern Unicycive's expectations, strategy, plans or intentions. Such forward-looking statements include, but are not limited to, statements regarding management’s beliefs regarding the use of proceeds of the private placement and the timing, size and completion of the private placement. These forward-looking statements are based on Unicycive's current expectations and actual results could differ materially. There are several factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, clinical trials involve a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial results; our clinical trials may be suspended or discontinued due to unexpected side effects or other safety risks that could preclude approval of our product candidates; risks related to business interruptions, including the outbreak of COVID-19 coronavirus, which could seriously harm our financial condition and increase our costs and expenses; dependence on key personnel; substantial competition; uncertainties of patent protection and litigation; dependence upon third parties; and risks related to failure to obtain FDA clearances or approvals and noncompliance with FDA regulations. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors described more fully in the section entitled ‘Risk Factors’ in Unicycive’s Annual Report on Form 10-K for the year ended December 31, 2022, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and Unicycive specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Investor Contact:
ir@unicycive.com
(650) 900-5470
SOURCE: Unicycive Therapeutics, Inc.
FAQ
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