Peak Bio Enters $100 Million Common Stock Purchase Transaction with White Lion Capital
November 4, 2022
Rare Daily Staff
Peak Bio entered into a Common Stock Purchase Agreement with White Lion Capital for a committed equity facility that provides the company with the right, without the obligation, to sell White Lion Capital up to $100 million of its common stock over a 36-month period, subject to certain limitations and conditions.
The company intends to use the net proceeds from the transaction for working capital to support its clinical and preclinical programs.
“This equity line will help bolster our investments in our programs and allow for opportunistic portfolio expansion,” said Stephen LaMond, chief operating officer at Peak Bio.
Peak Bio is a clinical-stage biopharmaceutical company focused on developing therapeutics addressing significant unmet needs in the areas of oncology and inflammation. The company’s lead product candidate, PHP-303, is a 5th generation, small molecule, neutrophil elastase inhibitor currently awaiting initiation of a phase 2 clinical study in the genetic orphan disease Alpha1 anti-trypsin deficiency disorder (AATD). Interim phase 2 clinical trial results are expected by the end of 2023. Peak Bio has successfully completed two phase 1 clinical studies in human subjects: a single ascending dose trial (SAD) and a multiple ascending dose trial (MAD). The SAD and MAD PHP-303 clinical studies demonstrated a favorable safety profile, and a dose was established for Peak Bio’s upcoming clinical trials.
AATD is a rare genetic disease that results in a lack of the protein AAT that protects the lungs against damaging enzymes that the body releases during inflammation. AATD can cause pulmonary emphysema, a progressive, life-threatening lung disease, recurring chest infections and permanent enlargement of parts of the lungs’ airways. There are an estimated 50,000 people in North America and 60,000 in Europe with severe AATD.
Peak Bio’s cancer platform consists of novel payloads/toxins in conjunction with a developing antibody-drug-conjugates (ADC) pipeline to address a growing unmet need in cancer care. Peak Bio’s current ADC approach unites conventional and direct targeting of cancer cells with toxins while also engaging the immune system. The Peak Bio payload stimulates the immune system which in turn cooperates with cancer cell killing and leaves behind immune memory cells.
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