Keryx to Raise $110 Million Through Issuance of Shares - Analyst Blog
Keryx Biopharmaceuticals Inc. (KERX) announced the pricing of its underwritten public offering of common stock worth $110 million. The company is looking to issue approximately 9.17 million shares of its common stock at a price of $12 per share.
The company intends to use the net proceeds from this offering for general corporate purposes, ongoing commercialization and development of Auryxia in the U.S., pre-commercial activities in Europe and to potentially in-license, acquire and develop additional drug candidates.
As of Sep 30, 2014, Keryx had $118.4 million in cash, cash equivalents, interest receivable and investment securities. On its third quarter conference call, the company had said that the launch of Auryxia in the U.S. will impact the company’s cash burn in the fourth quarter.
We note that Auryxia was approved by the FDA in Sep 2014 for the control of serum phosphorus levels in patients suffering from chronic kidney disease (CKD) on dialysis and was subsequently launched in the U.S. in late Dec 2014. We remind investors that Auryxia is already approved in Japan under the trade name Riona for the treatment of patients suffering from all stages of CKD.
Currently, Auryxia is under review in the EU for the treatment of hyperphosphatemia in patients suffering from CKD including dialysis and non-dialysis dependent patients.
Meanwhile, Keryx is also working on the label expansion of Auryxia. The company is conducting a phase III study on Auryxia for the treatment of iron-deficiency anemia in patients suffering from stages III to V non-dialysis dependent CKD. The company expects the study to complete by year end.
Apart from Auryxia, Keryx currently has no other approved products. We expect investor focus to remain on the commercialization and sales ramp up of Auryxia.
Keryx currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector include Alexion Pharmaceuticals, Inc. (ALXN), Amgen Inc. (AMGN) and Celgene Corporation (CELG). All three carry a Zacks Rank #1 (Strong Buy).
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