Humanigen Inc (OTCQB:HGEND), a clinical-stage biopharmaceutical company focused on preventing and treating an immune hyper-response called “cytokine storm” with its lead drug candidate lenzilumab, has commenced an underwritten public offering of 8 million shares of common stock.
Humanigen intends to use the net proceeds to support its manufacturing, production and commercial preparation of lenzilumab as a potential therapy for COVID-19 patients and for general corporate purposes.
In a statement Tuesday, the company said JP Morgan and Jefferies are acting as joint book-running managers for the offering. Humanigen expects to grant the underwriters a 30-day option to purchase up to an additional 1.2 million shares.
READ: Humanigen says lenzilumab demonstrated 80% reduction in relative risk of invasive mechanical ventilation and/or death in coronavirus patients
Humanigen has received approval from The Nasdaq Stock Market LLC for its common stock to begin trading on the Nasdaq Capital Market under the symbol "HGEN" on the trading day immediately following the pricing of the offering of the shares. The company’s common stock currently trades on the OTCQB Venture Market.
The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering.
Lenzilumab, an anti-human granulocyte macrophage-colony stimulating factor (GM-CSF) monoclonal antibody drug candidate, is being evaluated in an ongoing Phase III trial and was selected by the National Institutes of Health for its COVID-19 Big Effect Trial.
The company's stock on Monday closed up 24% to $1.99 a share in New York.
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