KYTHERA Prices Public Offering

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KYTHERA Biopharmaceuticals, Inc. (KYTH) announced the pricing of its public offering of common stock. The company is looking to issue 2,622,950 shares at $45.75 per share. KYHTHERA expects to raise around $120 million (gross) from the offering.

Net proceeds from the offering are expected to be around $112.2 million after deductions of offering related expenses. KYTHERA has provided a 30-day over-allotment option to the underwriters for purchasing an additional 393,442 shares of its common stock.

KYTHERA intends to use the funds for further development and commercialization of its lead candidate, ATX-101, which is being evaluated for the reduction of submental fat. The remaining funds will be used for general corporate purposes and working capital requirements. Upon approval, ATX-101 will enjoy the status of being the first-in-class submental contouring injectable drug.

We believe that the utilization of funds for further development and commercialization of ATX-101 is a prudent move by KYTHERA. Last month, KYTHERA reported encouraging top line data from two phase III pivotal studies on ATX-101.

The pivotal studies, REFINE-1 (ATX-101-11-22) and REFINE-2 (ATX-101-11-23), were conducted in the U.S. and Canada. All primary as well as secondary endpoints were met. The studies evaluated the efficacy and safety of ATX-101 (2 mg/cm2) versus placebo in reducing submental fat.

The REFINE-1 study result showed that while 70.3% patients on ATX-101 (versus 18.7% in the placebo arm) showed an improvement of at least one grade, 13.4% patients on ATX-101 (versus 0% in the placebo arm) improved two grades from the baseline.

Results from the REFINE-2 study showed that while 66.9% patients on ATX-101 (versus 22.4% in the placebo arm) showed an improvement of at least one grade, 18.7% patients on ATX-101 (versus 3.2% in the placebo arm) improved two grades from the baseline.

The studies also achieved secondary endpoints which included reduction in volume of the submental region as measured by magnetic resonance imaging (:MRI), and improvement in visual and psychological impacts of submental fat, assessed using the Patient-Reported Submental Fat Impact Scale. The candidate was found to be safe with no treatment-related serious adverse events observed during the studies.

Kythera currently carries a Zacks Rank #3 (Hold). Currently, companies which look attractive include Actelion Ltd. (ALIOF) and Endo Health Solutions Inc. (ENDP) with a Zacks Rank #1 (Strong Buy) and Alexion Pharmaceuticals, Inc. (ALXN) with a Zacks Rank #2 (Buy).

Read the Full Research Report on ALXN
Read the Full Research Report on ENDP
Read the Full Research Report on ALIOF
Read the Full Research Report on KYTH


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