Humanigen Inc (OTCQB:HGEN), which is studying lenzilumab to prevent and treat cytokine storm in coronavirus (COVID-19) patients, announced Tuesday the pricing of a private placement of about $72 million of common stock.
The company said net proceeds from the financing will be used to fund development of its monoclonal antibody portfolio and for general corporate purposes, including the pivotal Phase III trial of lenzilumab for the prevention and treatment of COVID-19-caused pneumonia.
In addition, the money will go toward the development of Humanigen's pipeline, including ZUMA-19, the CAR-T study involving lenzilumab being conducted in collaboration with Kite Pharma/Gilead Sciences.
"We are pleased to announce this financing that incorporates some of the most respected and knowledgeable specialized healthcare investors in the world,” said CEO Cameron Durrant in a statement.
“We appreciate our new investors' validation of Humanigen's approach to GM-CSF pathway science and its potential impact in COVID-19 patients, as well as other conditions with high unmet medical need.”
Dr Durrant also added that the company is planning to list on a national securities exchange in the coming months.
JP Morgan Securities LLC is acting as the placement agent for the financing, which comprises a group of healthcare investors including Venrock Healthcare Capital Partners, Surveyor Capital (a Citadel company), HealthCor, Valiant Capital Partners, First Light Asset Management and Ghost Tree Capital. Polsinelli PC is serving as the company's legal advisor.
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