Humanigen Inc (NASDAQ:HGEN) announced Tuesday that it completed a previously announced $72.8 million public offering of common stock meant to fund the development of its drug lenzilumab as a treatment for the coronavirus (COVID-19).
The company offered 9.2 million shares, 1.2 million of which were part of an over-allotment option exercised by the underwriters.
Humanigen plans to use the proceeds to advance the development of lenzilumab, a drug designed to treat what’s known as the cytokine storm, an overactive immune response to conditions such as COVID-19 that can cause inflammation, fatigue and, in severe cases, organ failure.
READ: Humanigen prices underwritten public offering of 8 million shares to raise $68M as it preps for Nasdaq debut
JP Morgan and Jefferies acted as joint book-running managers for the offering, the company said. Bryan, Garnier & Co acted as the European lead manager and National Securities Corporation, Roth Capital Partners and HC Wainwright & Co acted as co-managers.
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.
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